Skyscraper developers are being forced to delay or re-budget their projects in the wake of a crippling glass shortage affecting the commercial real estate industry.

Demand for the metal framed glass panels, or curtain wall, used in the construction of commercial and residential skyscrapers has outpaced production to such a degree that prices are up 30% in the last 18 months, setting new records. Glass can account for around one quarter of a construction project's cost, so an increase of 30-40% could increase project costs by tens of millions of dollars.

Many glass manufacturers went out of business or at least ceased operations during the recession in 2008 and 2009, and the ones that remain are unable to keep up with the steep demand for new office and residential condominium buildings. Out of the 47 glass manufacturing plants operating in 2007, 11 shut down by 2014, and it costs millions of dollars to build a new plant.

Some projects are being significantly delayed as builders wait for glass deliveries, which can further add to the cost of construction as labor and equipment sit idle or work is performed out of sequence. Restarting glass factories takes considerable time and money, so developers predict this shortage could last well into next year, at a minimum.

The rising cost and expected delays associated with this critical glass shortage is worrisome to real estate owners and developers, who now must decide how to address these increased costs and explore possible alternatives to the popular, view-enhancing curtain wall.

Curtain walls are usually identified as a long-lead design item because of their complicated structural engineering requirements and technical specifications for manufacturing the glass. Recognizing this additional delay can enable owners and builders to create and monitor a construction schedule that addresses and potentially minimizes these impacts. For more information on these and other construction project scheduling issues, see Practice Note, Construction Project Scheduling: Keys to Success.