(4/1/99)

Two of the biggest construction projects in downtown Salt Lake City could be put on hold. The reason? A nationwide shortage of a key building material. New Specialist Scott Light tells us more.

It doesn't look it, but Doug Young's warehouse is running low. He manages Pacific Supply, a large scale distributor of drywall.

Normally, to keep customers supplied, Pacific needs 15 loads of drywall a day. They're getting 10 loads because there's no more to be found.

Young says, "Simply the demand. There are so many housing starts. The economy is doing so well, interest rates are low, and a lot of people are building homes."

But the supply is so low, major manufacturers are actually rationing drywall, meaning distributors like Pacific and stores like Home Depot are getting just enough to get by.

So even with all the demand, Doug Young can't go get new customers.

"If we oversell, and we can't get the drywall, then we give them the problem," Young says.

'Them' in this case is Jay Starley and his construction crew.

His crew is putting up some of the drywall at the Assembly Building site and they're counting on suppliers like Pacific to literally.. deliver.

Starley says, "This has a finish date and they're going to hold conference here in 2000, and we have to be done, no matter what."

Assembly Hall will take two-million square feet of drywall. And just blocks away, another three-million square feet is needed here at the Little America Hotel site.

Little America has part of its drywall already. The first shipment for the Assembly Building is expected this week.

The weather is always a concern with construction but from here on out-- the latest concern is no building materials with which to build.

It's too early to tell if the shortage will push back construction deadlines. But, it has jacked- up the price of drywall.

If you're building a house don't worry! This shouldn't affect residential construction. But, on a project like Little America, drywall will cost $30- to $40- thousand more than expected.