Building Materials Could See Increased Demand

June 23, 2020

Demand for building materials has been affected by shutdowns in construction as many non-essential projects have been put on hold. Demand may increase as construction resumes. Several U.S. states have announced to reopen businesses in phases. In New York, several construction projects resumed in late April with more expected to follow the announcement that construction will be among the first low-risk sectors to reopen. 

Pennsylvania allowed construction to resume in May while construction projects in Washington will not resume until June. 

The industry may see increased demand for building materials due to grants for public works projects such as the Airport Improvement Program which will provide funding for the development and modernization of airports across the U.S. As countries begin to reopen there may be a trend away from reliance on imported building materials which could give a boost to local manufacturing sectors. It is also possible that companies will begin to value supply chain resilience over efficiency and may move to secure higher than normal levels of inventory to guard against future supply chain disruption.