The end-of-year market projection for 2022 is fueled by demand while the industry faces insufficient supply and economic volatility. Currently, there is a severe shortage of homes in the U.S., exacerbated by material shortages, labor shortages, and inflation. Freddie Mac said, “By one estimate, the U.S. is more than 3 million homes short of the demand from would-be homebuyers.” Archidiem has many tools and services to help component manufacturers and builders throughout the United States mitigate delays and meet the demands, as presented below.
The supply chain has not recovered from the disruptions caused by COVID-19 and other world events. The turnaround time for some supplies, such as components and windows, can be up to six months in some areas. In addition to raw materials and manufacturing shortages, another challenge is overcoming logistics delays due to rising fuel costs. However, experts predict the supply chain will correct itself in the next six months if the following two roadblocks discussed below do not impede recovery.
The shortage of experienced construction and manufacturing labor is a limiting factor for increasing home inventory. Disruption to the construction industry’s labor market is due to many factors, including COVID-19, the baby boomer generation leaving the workforce for retirement, and generation z choosing other career paths and entering the workforce later in life. According to the Home Builder Institute, the construction industry needs over 2 million more workers over the next three years to keep up with the booming demand for new houses amid the labor shortage. The labor shortages will continue, which is why leveraging technology is more critical than ever.
Inflation and rising interest rates have impacted consumers, businesses, and investors. The rise in costs for raw materials, skilled labor, and logistics creates additional challenges when producing homes at an affordable price. These compounded effects and rising interest rates have caused the market to slow as consumers cannot tolerate the prices and the cost of borrowing. For clarification, the “slow down” is a comparison of year over year after a boom over the last two years, but the reality is that we are returning figures and statistics of a “normal” market.
Most agree the market will remain strong, but it will take time to correct itself and return to a sustainable growth rate. The shortage of homes is so disproportionate to the supply that it will take even more time for the industry to close the gap. Some experts claim that it could take the construction industry up to 20 years to address the inventory shortage.
Archidiem is Here to Help
Archidiem is dedicated to creating tools to expedite pre-construction processes to help manufacturers and builders meet the market’s demands. Archidiem’s services help combat labor shortage issues and address material waste. Our services include:
Roof Truss Design Floor
Wall Panel Design
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The Archidiem team has over 50 years of industry knowledge that they have packaged into software that make the pre-construction process a breeze. The most recent software release is RoofCreator ®, now available on Autodesk® Apps. Designers can create a roof design in minutes by downloading the plugin to use in your existing Autodesk® Revit® file. RoofCreator ® generates a recommended design in seconds and gives you options to easily add design elements such as dormers and gables at the click of a button! To download RoofCreator ®, click here.
The Archidiem research and development team has other exciting software and services in the pipeline that will address estimating, design, engineering, and marketing collateral. Stay tuned for future releases!
If you are ready to start streamlining your pre-construction process, contact Archidiem today: Contact Us – Archidiem