Worcester Business Journal

10 Worcester Business Journal | June 27, 2022 | wbjournal.com A R C H I T E C T U R E & C O N S T R U C T I O N FOCUS BY SUSAN SHALHOUB Special to WBJ A mazon built its first two distribution centers in 1997, in Seattle and Dela- ware. As any of us know who have ordered – well, almost anything – online, the e-commerce giant grew from there, with its warehouse-building boom really taking off in 2005. According to supply chain and logistics consultancy MWPVL International Inc., there were more than 110 Amazon warehouses in the U.S. by January of 2020, with Califor- nia a main focus for locations. And that was before Amazon's build- ing boom in the wake of the coronavirus pandemic, as online orders skyrocketed. By the end of 2023, Amazon will have 355 large fulfillment centers, according to California equipment rental firm BigRentz Inc. at expansion includes new Amazon facilities in Worcester, Westborough, Charlton, Littleton, and Bellingham. Many factors are impacting Central Massachusetts construction material costs, and when it comes to steel, Amazon's build- ing activity is one of them. is ware- house-mania has caused a rush on local materials such as certain roof assemblies, said David Fontaine Jr., vice president of Fontaine Bros. Inc., a Springfield-based builder with offices in Worcester. Construction of the new Shrewsbury Police Station, which would have traditionally involved steel bar joists but now take longer to get, will instead use of alternate steel I-beams. "We've changed the components to source materials that are more readily available," said Fontaine, about working e Amazon-led warehouse boom, along with material, labor, and subcontractor shortages, are forcing local builders to plan well in advance e rising cost of construction with architects to involve less manufac- tured items and more masonry to meet the proposed schedule. "Steel beams may be a bit heavier, but you've got to be kind of a student of this and use that knowledge early in the process to set the project up for success." at's not to say that mate- rials have never seen cost spikes before. Fontaine remembers dramatic price increases in 2009–2011 for materials like gypsum board and steel, but commod- ities have stabilized. But now, he said, constant increases in things like steel, copper, and PVC conduit have been underway for 18 months or so, with no sign of cooling. "is one is just is very persistent," he said. Perfect storm Speaking for the trade group Associated General Contractors of Massachusetts, Jim Madigan, president and CEO of Worcester's F.W. Madigan Co. Inc., said builders around the state are using timber to avoid the delays and cost of ordering steel. But heavy timber is also expensive. "It really is like a perfect storm," Madigan said. "ere are not always easy substitutions, and when there are, they are expensive, with long lead times." Builders have seen lumber costs spike up and down for a year and half or so, with steel rising and staying there, Madi- gan said. ese rises have made project estimating difficult for contractors, who need to order materials immediately before prices rise again. High petroleum costs are more perva- sive, said Madigan, as they don't just af- fect the construction industry in terms of transporting materials, but also the price David Fontaine Jr., vice president of Fontaine Bros. Inc. (Above middle) Amazon is constructing multiple facilities in Westborough. (Above bottom) Central One Federal Credit Union of Shrewsbury is in the midst of an expansion and now has seven branches. Jim Madigan, CEO and president of F.W. Madigan Co. Inc. PHOTO | GRANT WELKER PHOTO | GRANT WELKER

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