Business

Sands: Construction supply chain issues to continue in Q1

High costs and supply chain issues with construction materials will likely remain a sore point for The Bahamas into the end of the first quarter, former Bahamian Contractors Association President Leonard Sands told Guardian Business yesterday, explaining that the demand for housing in the US is also a factor driving material shortages and high material prices.

Sands added that output in the construction sector is being affected by the surge in COVID-19 cases locally, with many workers out sick with flu-like symptoms.

According to Sands, the United States’ battle with the Omicron variant is also exacerbating some of the issues in The Bahamas. 

“Costs won’t go down right now. Everything is still holding steady and America is still in the middle of flux with their new wave of COVID,” Sands said.

“There is demand for housing all over North America and when there is such a demand, obviously prices go up to meet demand.

“I don’t think prices will increase more but they won’t go down. I don’t think there will be more supply chain delays in terms of longer leads, but I’m sure it won’t get any shorter.”

He explained that the local construction sector stockpiled hard-to-get goods during the last shortage and should have an adequate supply for now. He said it remains to be seen if prices are reduced when stores are forced to order more stock.

Sands contends that summer could usher in lower prices, though he said that is not a surety. While value-added tax has been lowered from 12 percent to ten percent, he said it is too early to tell what effect it has had on the industry.

“I think we’ll start to see what he results are further on in the year,” Sands said.

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Chester Robards

Chester Robards rejoined The Nassau Guardian in November 2017 as a senior business reporter. He has covered myriad topics and events for The Nassau Guardian. Education: Florida International University, BS in Journalism

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