Inflation putting a strain on the builders in construction industry
Little Rock, Arkansas – A business district is starting to take shape in the Pettaway neighborhood near SOMA, but increased costs are adding a lot more stress to the project.
According to the developer, Michael Orndorff, prices of everything from sheetrock to concrete and lumber have all increased.
Some products, like windows, are taking weeks to months to come in together.
“You want to budget,” Orndorff said. “You want to come in under your budget. You want to finish your project before whatever personal deadline you have. I cut my teeth for 10 to 15 years in this business during a time when everything was predictable and I was spoiled and I didn’t know it.”
Orndorff created a budget for one of his projects to be about $110 per square foot to build. It’s now looking like $124 he said.
“I’m still not finished,” Orndorff said. “Prices are still going up. Every invoice that I get is always higher than expected. Prices are moving so quickly that you cannot budget for it.”
According to Ordnorff, this won’t keep him from building.
He will build in good times and build in bad. Ordnorff just hopes he can make up some of the costs elsewhere.