TOUGH TIMES AHEAD: BCA chief fears industry facing 2-3 years of supply shortages and price hikes

TOUGH TIMES AHEAD: BCA chief fears industry facing 2-3 years of supply shortages and price hikes
A worker stands amid infrastructure renovations underway at Government House in June 2021. (BIS PHOTO)

“It’s really a sad situation”

NASSAU, BAHAMAS — Bahamian Contractors’ Association (BCA) President Michael Pratt said yesterday it may be two to three years before the industry sees relief from current supply shortages and significant price hikes, with New Providence cement and concrete suppliers now also facing supply chain disruptions.

Michael Pratt.

Pratt told Eyewitness News: “It’s really a tough time the construction industry is facing right now. There are supply issues and the cost of a number of building supplies have tripled. We’re now seeing where people can’t find cement. That is a major issue, especially for the smaller contractors.

“Obviously, this is a global issue as the demand for supplies has increased significantly. I don’t think this is going to be fixed for another two to three years.”

The supply chain disruption has forced Sandals to push the reopening of its Royal Bahamian Resort back to January 27, 2022.

One cement/concrete supplier who did not wish to be named told Eyewitness News: “What has been happening is there is a vessel from Mexico that has been delayed. That is why there was a shortage of cement. I understand that there are more delays. There were plants that were closed because of COVID and the situation is further compounded by shipping issues.”

Terrance Kemp, manager at Premix, told Eyewitness News: “There is a cement shortage because of COVID. Everything is backed up. It’s a long line of ships and everyone is trying to get to different ports. There is a huge demand right now and the demand is far greater than the supply.

“You can’t blame the local companies; this is really out of our control. It’s beyond our control. We could order two to three months out and still not get our supplies here on time. We ordered some stuff six months ago and still haven’t gotten it yet. Many plants were shut own because of COVID. It’s really a sad situation.”

Prime Minister Dr Hubert Minnis, during his budget communication, noted the reduction in duty on a number of building supplies to 20 percent and 25 percent was intended “to encourage construction activity”.

Leonard Sands, a former BCA president, however, noted that while this was a “good gesture”, it would be of little benefit to consumers as the cost of construction-related materials has increased by more than 45 percent over the past year.