With the casino resort construction boom still taking place in Las Vegas, the
prospects of a building supply shortage is not far-fetched whatsoever. In fact,
Las Vegas developers know all too well about shortages of steel and concrete,
both of which have come about in recent times. Understandably, steel and
concrete are the major foundation materials of most large-scale buildings and
high-rises.
Another highly used material, which nobody predicted would see a shortage any
time soon, is glass. However, a glass shortage seems to be precisely what is
happening. According to some Wall Street analysts, glass suppliers are hinting
that they will not be able to accommodate the latest surge of casinos which are
in the developmental stages but have yet to begin construction. In fact, the
world's largest suppliers of glass - Mexico and China - are telling some casino
developers that they will not be able to deliver the necessary amounts of glass
required to meet construction demands until 2008.
Considering that most of these resorts are completely faced in glass (take
the Wynn Resort, for example), using glass from China and Mexico is practically
unavoidable. Although glass supplies can be obtained from other sources,
including within the U.S., there just doesn't seem to be enough to go around. To
put things in perspective, the prospective growth in the amount of casinos and
resort rooms has dropped to only a 4% increase until the year 2010, which is
mainly due to several projects being put on the back burner.
Las Vegas should not be disappointed though. Nor should the casinos who are
already currently under construction and/or nearing their finishing stages.
Business is booming as usual. Attendance is up and gambling revenue levels are
at all-time highs. MGM's City Center is one such resort complex that is in the
green zone, and will stand to benefit immensely from a stall in competition,
while projects like the W Hotel, Boyd Gaming's vastly expensive Echelon Palace
and Ruffin's New Frontier converted Montreux Casino could be confronted with
some construction road blocks.