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Editor’s Note
The fluctuation continues Sarah Wright | Editor
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elays, shortages and labor Challenges — among other factors — continue to drive up the cost of construction across the nation. Much of this is still tied heavily into COVID and the sudden stop in production, which has still not been fully bridged, even as demands soar. The war in Ukraine has also impacted oil prices, further affecting costs. Construction input prices increased 2.6% in February compared to the previous month, according to an Associated Builders and Contractors analysis of the U.S. Bureau of Labor Statistics’ Producer Price Index data released on March 15. The same analysis found nonresidential construction input prices rose 2.5% for the month. In a press release, ABC chief economist Anirban Basu noted, “It will get worse before it gets better. Not only has Russia’s assault on democratic Ukraine created supply challenges in a number of categories, including oil and natural gas, but the reemergence of COVID-19 in parts of Asia and Europe is also poised to produce additional impacts. While many still expect commodity prices to decline later this year, the wait has been meaningfully extended by geopolitical conflicts and ongoing COVID-19 lockdowns. “For contractors, this has the potential to put even more downward pressure on margins. It is likely that, as bid prices continue to soar, more project owners will choose to delay project starts. The current state of affairs also creates complications for public agencies considering when to start large-scale infrastructure projects. It is a challenging time to begin such projects, given the
8 THE MUNICIPAL | MAY 2022
workforce shortages that remain and materials price inflation. Undoubtedly, some public administrators will decide to extend planning time, delaying project start dates.” Faced with this, many municipalities have been forced to seek additional appropriations to see projects to their conclusions. In this issue of The Municipal, we spotlight several building projects across the country, including the Grove at Towne Center in Snellville, Ga. The city has had the good fortune to dodge some of the labor shortages while launching this immense construction project that will bring about a downtown — something it has been without. Writer Beth Anne Brink-Cox spoke with Snellville City Manager Butch Sanders about this ambitious project. Farther north, Johnson City, Tenn., is just embarking on a journey to satisfy a different community need — the creation of a business incubator — while repurposing a historic courthouse to do so. Writer Kevin Kilbane shares more about this project, which sees Johnson City work closely with Washington County. Additional topics include cities pursuing deconstruction versus mechanical demolition; Naperville, Ill.’s downtown improvement strategy; and College Station, Texas’s, brand-new city hall and its future plans for greenspace and a visitor center. Despite challenges with labor, shortages, and price hikes, municipalities seem keen to continue with their building projects; some just might include slight deviations from the original plans.
