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Rising costs, supply chain issues battering B.C. construction industry, survey finds

Click to play video: 'New survey reveals B.C. contractors are experiencing length construction delays, rise in prices'
New survey reveals B.C. contractors are experiencing length construction delays, rise in prices
In virtually every trade and in every pocket of B.C., contractors are experiencing rising costs and lengthy delays. Aaron McArthur has more on a new survey that reveals the challenges ahead for the construction industry. – Jan 5, 2022

More than three-quarters of construction businesses in B.C. are experiencing supply chain challenges, a new report by the Independent Contractors and Businesses Association (ICBA) has found.

Seventy-six per cent of ICBA members surveyed reported delays in sourcing construction materials, ultimately resulting in rising costs and project delays, the association said in a Wednesday news release.

Supplies that are hard to come by include fixtures, plastics, paint — and even dump trucks, said ICBA president Chris Gardner.

“Contractors in virtually every trade and in every corner of the province are experiencing delays and challenges in getting the supplies they need to complete projects and meet deadlines,” he said in the release.

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“Manufacturers worldwide are struggling with labour shortages and logistics breakdowns. In the short term, there is no relief in sight.”

Click to play video: 'Property assessments reach unprecedented levels across B.C.'
Property assessments reach unprecedented levels across B.C.

According to the ICBA, 88 per cent of businesses on Vancouver Island, in the Interior and Okanagan reported delays obtaining materials. Seventy-four per cent of Lower Mainland and Fraser Valley businesses were impacted, and 68 per cent of businesses in northern B.C.

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A total of 63 per cent of members also reported increased prices and 79 per cent reported project delays.

The delays are on a scale “not seen in decades,” said Gardner. It’s become common, he added, for contractors to work with about half of the trucks they need for projects, as supply chain bottlenecks punt new truck orders into late 2022.

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“In an era where housing and construction costs continue to rise seemingly unchecked, supply chain constraints are another key factor putting pressure on affordability in the B.C. market,” he said.

The ICBA  represents more than 3,300 construction and resource development companies across the province.

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