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Strong local and global economies are usually good news, but the high demand they create for some resources can hurt certain businesses. While material shortages in the construction industry are not as pronounced as they were last year, many firms have had to tweak their approach to stay on top of evergrowing demand in the face of dwindling supply.
According to Jeff Thredgold, economic consultant to Zions Bank, a strong domestic residential construction market and an even stronger commercial market are contributing to shortages of all kinds of construction materials.
On a local level, things will only get tighter, he said, once The Church of Jesus Christ of Latter-day Saints undertakes major redevelopment work in downtown Salt Lake City.
"We'll see that in a big way as the church begins their billion dollar reconstruction of two blocks of downtown," he said.
Demand from other parts of the world is also contributing to shortages.
"You're getting strong demand for all kinds of construction materials out of places like China and India," Thredgold said. "Demand from that part of the world is driving up prices."
According to Tom Case, branch manager with Salt Lake City-based Granite Construction, costs are going up because the company has had to turn to new, nonlocal sources.
"It's coming from farther away and that comes with a cost," he said. "It's not that you can't get it but you have to pay for it because it's coming from farther away."
The resource that's been most difficult to obtain, Case said, is liquid asphalt, also known as...