Sticker Shock and Supply Chain Woes: Bill Clark unpacks true equipment costs for Construction Business Owner
Construction Business Owner
By William Clark, Partner, Assurance Services
Equipment, machinery and vehicles are essential tools to nearly all contractors and continue to be a significant expense on most of their income statements. Like labor and materials, the costs of purchasing and maintaining construction equipment have also been affected by ongoing supply chain issues and inflation. In fact, in the new 2023 Marcum National Construction Survey, 37% of construction companies say they may delay purchasing equipment because of interest rates. If the sticker shock and long lead times related to new equipment purchases are not bad enough, used equipment prices are also at an all-time high, and availability is spotty at best.