NASSAU, BAHAMAS — A former Bahamian Contractors Association (BCA) president said yesterday that it will be “extremely difficult, if not impossible” for contractors to give fixed contracts over the next 12 months, noting that logistical and supply chain issues continue to drive materials costs up as high as 50 percent.
In an interview with Eyewitness News, Stephen Wrinkle said: “What we’re seeing is just delay after delay and that ultimately creates additional cost. If it’s a manufactured item then chances are there are going to be some issues. There are over 600,000 containers sitting on ships off the east and west coast of the United States. There are containers loaded with freight that cannot get to a ship and when they do get on they can’t get on. I think things will only get worse before it gets better.”
Wrinkle noted that supply chain and logistics issues came as a result of the pandemic. He said that during the pandemic suppliers saw a draw down on their inventory and with consumer demand now increasing, factories which had been shut down have not been able to meet surging demand.
Further compounding supply chain and logistics issues affecting the import of construction related materials, Wrinkle said, is rising fuel costs.
“It’s a necessity,” he said.
“We need fuel and we have no choice but to buy it even though prices are high. We have to bear it, suppliers have to bear it and consumers have to bear it. We’re just tadpoles in a big pond and these are issues that are really beyond our control. It’s going to be extremely difficult for any contractor to give a fixed price contract over the next 12 months. The price of many items have gone up as much as 25 to 50 percent.”
