Inflation is hitting the construction industry harder than ever this year. As a result, ballooning materials prices, high-interest rates, and supply chain slowdowns are posing unique challenges for contractors.

By understanding the challenges facing the construction industry today, contractors can build a strategy that will keep their business moving forward.

The Cost of Construction in 2023

In January, Associated Builders and Contractors reported a 37.7% increase in construction input prices since 2020. Compared to last year, both construction equipment and concrete have increased in price by over 12%, with many other materials on a similar trajectory.

Supply chain disruptions are still a big concern for contractors. It’s not just that materials are taking longer to reach their destinations, but parts shortages are causing longer wait times as well. Adding to these struggles, the Build America, Buy America Act is now in full swing in the United States, which requires many contractors to buy a higher percentage of building materials within the U.S. Unfortunately, the demand for American-made materials is currently much higher than the supply can support, which is causing frustration for many U.S. contractors.

Experts are also expecting interest rates to continue rising in the coming year, which may cause contractors to be more choosy about their purchases.

With so many factors at play, contractors are understandably looking for ways to save money and prevent losses this year.

Smart Ways to Beat Inflation in Construction

By making moves to protect your assets, it’s possible to thrive even in the face of inflation-related setbacks. Below are two effective tips for your 2023 construction season survival guide.

Deploy Security Cameras

Deploying Construction site cameras and construction security cameras are excellent ways to prevent losses that can occur because of theft and storage mishaps. They can also save contractors money in other ways.

Many insurance companies provide discounts to contractors who deploy site cameras on their projects. Since cameras reduce liability, they’re a win-win for both contractors and insurance companies.

Construction security cameras can deter theft and encourage proper storage of valuable materials and equipment.

In the case of a theft or accident, contractors can submit site camera footage as evidence, which may help recover losses.

We designed the SiteWatch PRO smart security camera to meet all of these needs. Contact our sales team for more information about purchasing or renting cameras for your project.

Choose Renting Over Buying

Last year 62% of contractors rented construction equipment for their projects instead of buying, and that trend is likely to continue. High construction equipment prices and rising interest rates are giving contractors a big reason to rent in 2023.

The reduced overhead costs associated with renting can help contractors maintain their project schedules and keep their budgets under control. With the challenges facing the construction industry this year, it’s a great time to get on the rental bandwagon.

Reach out to Sensera sales to find out how our Project Pricing model can save you the overhead costs of purchasing.

Sensera Systems is here to help contractors save money and protect their assets in 2023. Get in touch with us today to learn more.

About Alicia Eichman

Alicia Eichman is a Freelance Writer and the owner of Silver Quill Writing, where she specializes in writing content for companies in the tech, health, and wellness industries. Before transitioning to a writing career, Alicia studied Psychology at Pennsylvania State University and worked in the construction tech industry for 5 years.