Construction Costs and Supply Line Issues January 2022

Inflation NOT Transitory, Supply Line Issues NOT What You Think.

As a planning company with anywhere from 30-50 projects in our pipeline at any given time, we have a pretty good pulse on the heartbeat, or flatline, in the market. Right now there is no flat line. These are our observations from a planning and construction point of view.

Bullet Point Briefs;

• SUPPLY - One of our contractors today just ordered La Cantina brand doors for a client in Orange County. Pretty standard stuff. This is January 24th and the doors are expected to be delivered October 22, 2022. Read on and find out why.
  
  
• FIAT CURRENCY - Inflation keeps driving costs up and up and up. Yet people are still wanting to build. The reason we are hearing is that they want to protect their assets inside their own home. I call this building a big home "safe". In the end will this weather the economic woes ahead? It depends on who's in charge of the currency in the coming years. With Feds raising the rates things are only going to get worse.
  
  
• HOUSING DEMAND - Today, a homeowner with an approved permit told me he wanted to expand his addition to include yet another room addition and bathroom. Why? Because he was trying to buy another home, but even offering 20% over the listed price on five homes he can't buy anything. Someone else was offer 30% over listed price. His solution, put the investment into the home he is living is now. This is his conclusion even knowing, that materials are taking a long time to get. Even getting a contractor to come out and visit your property has become a challenge, he said.
  
  

Our opinion and observation draws two very clear conclusions;
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1. IT'S POLITICAL - The supply chain issues have NOTHING TO DO WITH COVID, but that is a very convenient cover story.  It is actually due to Governor Newsome's increased EPA standards that restrict half the trucks in the U.S. from operating in California. They can't clear the ports of the shipping containers. If your trucking company doesn't meet the new standards you will receive a hefty fine. Like $400,000. Business friendly? Not at all. The governor won't temporarily waive or delay the EPA law so that the docks can be cleared allowing for ships sitting out in the harbor to unload their goods. Even the train systems are over loaded. Looting of trains sitting in Yorba Linda, California because there is no room on the tracks is a regular occurance...a direct result of a twisted political agenda that has nothing to do with protecting the environment, but flexing globalist authority over California that all must comply with the green new deal. 
   
   
2. Inflation: Don't get me going! The Feds are NOT really federal bankers. It's a private banking system, The Western Central Bank and it's at the end of it's 70 year cycle. Watch for more interest rate hikes and their push to introduce their own digital currency while they bad mouth all other alternate forms of currency. The U.S. has lived through the tyranny of three central banks and it always ends the same. They are globalist bankers hell bent on milking the U.S. economy as their fiat currency loses values. It's not really because materials COST MORE, It actually costs less to make materials, it's because their fiat dollar which isn't tied to anything like gold or silver is deflating and losing value. Homeowners are figuring this out. Yet, In the face of inflation, many homeowners are still looking for a place to protect their assets. Our business continues to boom because that place is in the structure of their expanded home.