Labor, Steel, PVC Shortages Could Hinder Swift Recovery in Texas, Florida

Hurricane Harvey's immediate impact on the construction sector will be a disruption in the supply chain for key materials, along with scheduling problems for projects that were under construction. As the cleanup and eventual rebuilding proceed, increased demand for materials and labor will push costs upward and contractors will be scrambling to secure supplies and workers. Before the storm hit, Texas already had generated $83 billion in new construction starts through July, slightly above last year's pace, according to Dodge. Houston was a particular hot spot, with Dodge reporting 26 projects valued at over $25 million, starting since last January.