Dive Brief:
- Amidst a construction boom of office and apartment buildings across the U.S., builders are reporting that a glass shortage is adding substantial costs to projects and causing lengthy delays, The Wall Street Journal reported.
- Curtain-wall prices have risen more than 30% in the past 18 months, as glass manufacturers struggle to keep up with the increased demand.
- Glass makes up about 25% of the budget for a high-rise construction project — which means the glass shortage can pile on tens of millions of dollars to the total price tag of a building.
Dive Insight:
The current crisis is the result of glass manufacturers shutting down during the recession and never reopening. Coupled with the recent surge in building — especially in New York and other major U.S. cities — the glass maker gap left behind is now catching up with the recovering industry.
Ralph Esposito, of Lend Lease, told The Journal he believes manufacturers didn't expect the building industry to grow so quickly after the disastrous years of the recession, and therefore never ramped up production in anticipation of the surge in demand. "I don’t think people had the leap of faith that the [real-estate] industry would be as strong as the run we're currently on," he said.
Construction experts say the glass shortage, which only became a major issue in the last few months, will likely be a lasting problem. Because reopening shuttered glass factories requires a significant amount of time and money, developers predict the shortage will continue into early 2016.
Scott Kinter, a senior vice president in Boston with major developer AvalonBay Communities, told The Journal: "Everyone is so busy and they can't keep up with the demand ... If I were starting a new high-rise anywhere on the East Coast today, the first thing I'd try to lock down is the glass. Then I'd pray nothing goes wrong."
