In today’s economy, inflation is greatly affecting nearly every industry. The construction industry has not escaped the crushing results of record-high inflation, leaving many contractors worried about what’s to come. The cost of necessary construction materials as well as the labor needed to complete jobs has skyrocketed. The inflation rate for construction was 3.4% in 2019 and has jumped to a whopping 12.8% in 2022, affecting both residential and commercial building, hiring and job competition. So, how do contractors and construction companies ride this wave of record inflation? Is there relief for the construction industry somewhere in the near future? Surviving inflation will take some savvy business maneuvering and an understanding of the ebb and flow of inflation as a whole. 

Preparing for Inflation

Preparing for the inevitable has become even more important in our post-COVID economy. We have all witnessed how the business climate can change on a dime. The country has not seen inflation similar to what we are currently experiencing since 2008, at the precipice of the Great Recession. Construction companies have been grappling with rising costs since the beginning of the pandemic caused by unprecedented supply chain issues and spiking demand for newly constructed homes, renovation services, and work prodded on by President Joe Biden’s infrastructure bill.