Why Have Electrical Supplies Gotten so Expensive?
Now that’s a good question. If you are an electrical contractor or are thinking of building a new home, you surely know that the cost of electrical supplies, especially copper wire, has gone way up. So, whether you are an electrical contractor or a new home owner, let’s talk about why and what you can do to get the best bang for your buck.
First of all, the cost of most anything is determined by the old laws of supply and demand. In the case of copper, the supply is limited and the demand is very high. Why?
It seems that China is now buying about 50% of the copper produced and recycled in the world to make wire. That limits the supply everywhere else. Construction of new homes and other buildings is at a high. That makes the demand for electrical supplies very high too. And there are few alternatives to copper for many uses.
Like everything else that we buy, the supply of copper and other electrical components has taken a hit in the last couple of years because of Covid 19 and because of the worker crunch. Many high paying good jobs are not being filled for a number of reasons. However, copper was up 22% in 2020 even before Covid.
Like every commodity that is manufactured, electrical supplies are also affected by labor costs, transportation costs, and (usually, in a positive way) by volume purchases. (It turns out that larger spools of wire are more expensive per foot than small ones).
Plastic resin is used to insulate wire and to provide a protective coating to electrical components. Its increased cost also contributes to the overall cost of any project.
So what can you do to control costs? Here are a few suggestions.
First of all, shop around. This can be time-consuming but often worth it. Consider hiring a company specializing in just that service. There are good choices on-line.
If you are a homeowner, get an accurate estimate with an upfront plan—and insist that your electrician stick to the plan.
Watch out for unusually low estimates.
Hire only skilled workers. Someone who doesn’t know what he is doing can waste at lot of time and valuable supplies.
Going under ground—in a concrete slab— can sometimes reduce supply costs.
And finally, take a look at using aluminum conductors where the code allows its use.
Consider other energy conservation ideas for your home as well. Our StatGuardPlus thermostat cover is a wonderful way to control room temperature and prevent tampering or damage in an office or store. It uses a combination lock, has an open hinge design, and it’s sturdy and easy to install. Screws and drywall anchors included. Check us out at StatGuardPlus.com.
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