Builders experienced shocks to their supply chain in early 2020 from COVID-19. The Associated General Contractors of America (AGC) reported in April 2020, 45% of contractors experienced shipping delays or supply chain disruptions due to COVID-19 as manufacturing facilities and ports closed overseas.
The building product industry is highly globalized and contractors are often reliant on imports. According to Richard Branch, chief economist at Dodge Data & Analytics, 30% of all building products used in the U.S. are from China, with another 20% sourced from Mexico and Canada. Smaller, lower-cost, and more standardized products are typically manufactured outside the U.S. The products most likely to be sourced overseas include hardware, electrical materials, lighting fixtures and bulbs, plumbing, and fire protection systems. Domestic manufacturers also rely on raw materials and components from overseas to build their finished products.
As the COVID-19 pandemic continues these impacts are expected to remain, leading to higher prices and supply chain bottlenecks for contractors, especially as construction rates return to normal. As a result, contractors and manufacturers are seeking ways to build a more resilient supply chain.
For many common building materials, it is possible for builders to find a domestically made alternative. Contractors can ensure their projects are flexible enough to avoid tariff risks by specifying and purchasing American-made building products. Always specifying at least one product made close to home makes sure your project’s contractors have options.