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Date Published: 09-14-2021
Key Takeaways:
Overview
Construction Starts: Statewide construction starts have increased in four of six sectors as compared to mid-year 2020. Commercial and manufacturing starts for the first six months of 2021 total over $1B dollars with commercial starts increasing in all key markets. A drop in education starts is not concerning as the sector is cyclical and South Carolina’s population continues to increase which will impact those starts over time.
Construction Workforce: According to the Bureau of Labor Statistics, as of June 2021 construction employment in South Carolina totaled 107,000 persons, 4,900 more than June 2020 and roughly 300 more than pre-pandemic first quarter 2020 averages. South Carolina’s unemployment rate continues to decrease with June at 4.5%, lower than the national average of 7.5%.
U.S. Material Pricing: Material pricing is volatile and increasing. Demand, supply chain distributions, and workforce shortages amongst producers are all contributing factors. Three-month pricing index averages from April thru June 2021 increased for eighteen of nineteen tracked materials. Seven of these materials saw increases above 10%. The highest increases were recognized in lumber at +30.2%, all types of steel and metal products at +10.6% to +25.4%, and gypsum products at +11.0%. Lower price increases for other materials would have made the top five list in prior publications of this report. Lumber costs have started to decrease, albeit from an elevated position. It remains unclear if steel and metal products have hit a price ceiling.
Columbia
1301 Gervais Street, Suite 601,
Columbia, SC 29201
Charleston
4289 Spruill Avenue, Suite 200,
North Charleston, SC 29405
Greenville
55 E. Camperdown Way, Suite 200,
Greenville, SC 29601
Spartanburg
145 W. Main Street, Suite 300,
Spartanburg, SC 29306