The war in Ukraine and lockdowns in China have sent home improvement prices skyrocketing, and dealers are coming up with new ways to keep renovation costs down.
Supply chain issues have led to an exponential rise in the price of lumber, metal and gasoline, making home improvement projects more expensive to complete as demand soars afterward. of Covid.
Despite this, most traders have tried to keep price increases to a minimum by finding different ways of running their business.
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A report from Hipages shows that 85 percent of commercial businesses across the country need to charge more to deal with higher overhead costs, but most limit raises to 10 percent.
Over the past year, the cost of wood paneling and carpentry has increased by twice this amount, and raw materials have increased by 20 percent.
Metal products used in home construction are up more than 16 percent.
It comes as more than a third of homeowners plan to fix their properties in the next six months, with 68 percent in need of essential repairs and maintenance.
The Tradie Trends Report shows that 59 percent of merchants were exploring more affordable materials to keep costs down for customers, while 38 percent were traveling shorter distances between jobs to save gas.
Hipages director of customer service Stuart Tucker said rising gasoline prices and minimum wage increases were taking a toll on industries.
“Virtually all of their costs are going up,” Tucker said.
He said Covid had led to reduced capacity at factories around the world, as well as delays in shipments, while the war in Ukraine had driven higher prices on tankers.
“All of those factors have had a huge impact on the materials that retailers use every day across all categories,” he said.
Sydney plumber Justin Leveline of Leveline Plumbing said raw material costs had risen by around 30 per cent “across the board”.
“I’m in the renovation game,” Mr. Leveline said.
“I see price increases on absolutely everything, from drywall to aluminum to copper to wood, everything has gone up when it comes to the construction trade.”
He said he has needed to change the way he operates as well as charge more.
“I had to restructure the company,” he said.
“One way I’ve done it is to try to stick to my 10km radius without spending on tolls and extra fuel,” he said.
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