Home Improvements Going to Cost More in Near Future
The total price of a home improvement project is going to increase very soon. The market is coming out from the recession time-period. The price was very low when the market was facing this recession period. Builders and contractors have also suffered heavy losses during that time. Now they would surely like to cover their losses. The spending capacity of an individual is going to increase due to the end of recession. It will increase the price of labour as well as the required materials for home improvement.
The materials required for a home improvement project includes almost everything which we use in our house. It includes steel related materials, hardware, sanitary items and various other things. RICS’ Building Cost Information Service (BICS) says that the cost of transport is increasing day by day. It is also affecting the price of raw materials. Market is also facing the deficiency of tradesmen. The overall consequences are the increase in the home improvement cost.
The international price of oil is increasing with fast rate. It has been already been cleared by the analysts that price of oil is going to cross more than $200 per barrels within few years which will further increase the transportation cost. The international requirement of raw materials is increasing continuously. The upcoming international giants like India and China are unstoppable. Their growth rate is tremendous due to which their requirement for raw materials is very high. BICS have clearly showed the trend of price rise through various examples. Let us take an example given by BICS. A person wants to change roof tiles. The previous price of roof tile was 220 pounds and the current price is around 280 pounds. It shows a tremendous increase of 17%. Real estate experts of China are saying that the rise in price list is not for profit however it has become necessary to maintain the running costs. This makes the situation very poor for the people.
You can also see the results of SCA Hygiene Australasia. They are the producer of Sorbent, Tork and they are also one of the leading manufacturers of hygiene products. Their reports clearly say that they were reluctant to increase the prices. They left with no options but to increase the price. They have mentioned that the current market environment is very sturdy and they are not getting the good quality raw materials at economical rates. It is increasing their total input costs. Therefore they have to increase the price to maintain their expenses. The price increase is not for profit but to maintain the current level. The price of wood is also increasing. The wholesale price of lumber is at historical highs. The demand is rising however the woods are not available at the same rates. Therefore it is becoming tough for an individual to purchase all the related materials.