NASSAU, BAHAMAS — Bahamian Contractors Association (BCA) President Leonard Sands said yesterday that consumers are very close to an “awakening” over construction cost inflation, as he predicted a “boom” for the local construction industry over the next 24 months.
Sands told Eyewitness News that consumers for the most part have yet to fully appreciate why the cost of construction materials and supplies, driven by shipping and supply chain challenges, have increased so dramatically.
He said the housing sector will “really be taken aback” when reality sinks in.
“There has been an overall increase in construction cost due to the increase in shipping cost,” Sands said.
“As an industry, we are at a palace where we appreciate it now. It’s not that we like it and the industry has no other recourse but to pass those increases on to the end consumer. I don’t think a lot of people are at the place where they’ve really come to appreciate how much costs have gone up in the construction industry.
“People are going to start to take note,” he continued.
“The housing sector will really be taken aback. I recently spoke to a major merchant in the construction sector who lamented that they were having difficulty explaining to customers why costs are so high now for products and services. It’s difficult for them to maintain competitive pricing.
“They have no choice but to raise their prices and prices are going up quickly. It’s been difficult for them to try and get costumes to understand what’s happening and they are losing customers. Many people think there’s price gouging going on and customers think they can get products and services for less elsewhere but they’re finding out that they can’t,” said Sands.
“An awakening is coming where consumers will realize that these costs are unavoidable. We’re very close to that. Prices have gone through the roof and it’s not been to the merchant’s benefit either. It’s hard for merchants in the sector to compete without almost losing money.
“Adjustments need to happen. People are just trying to maintain their bottom line.”
Sands also predicted that the Bahamian construction sector will be “vibrant” over the next 24 months.
He added: “The construction sector is probably going to be the most vibrant and active we’ve seen in a number of years. That comes with a lot of expectations on the industry, government, and stakeholders to ensure that we manage this space. There’s a boom on the horizon. It’s going to be an impressive next 24 months.”
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