Some signs of inflation are easing in parts of the economy. However, it is not occurring evenly and doesn’t hit all sectors consistently. Those who have projects going out for bid in the spring of 2023 may be hoping for good bid prices. That could happen, but everyone should be cautioned to temper expectations because even if inflation eases, it may not result in deflationary bid prices.
In addition, supply and demand of base metals are still seeking a new equilibrium. This may impact the supply and cost of pumps, fittings, and other metal materials moving forward. For example, even a 25% drop in published stainless steel prices from October 2022 ($195) would not likely result in prices below those from October 2021 ($144).
If you have questions about inflation and potential financial project impacts, feel free to contact Ryan Graft at Ryan.Graf@ae2s.com.