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Supply chain issues cause development delays in East Tennessee

Several large-scale projects including a new Amazon site in Alcoa are struggling because of supply chain issues.

KNOXVILLE, Tenn. — Several large-scale projects in East Tennessee are delayed because of supply chain issues. 

Amazon said its new distribution center in Alcoa would be delayed by a little more than a year. 

In Knoxville, the developers of the Andrew Johnson Building, the Tennessee Supreme Court and several smaller developments said they were experiencing delays because of supply chain issues.

Tim Hill of Hatcher Hill Properties is developing multiple projects around Knoxville. 

"We just have an array of delays," Hill said. "Doorknobs taking months to get, we're renting a refrigerator for this unit that we're selling tomorrow." 

Hill said he had trouble getting paint because of a shortage too and it's costing them money. 

"It has, unfortunately, become the norm to move into a new construction or a remodel, missing items," said Mary Katharine Wormsley, a broker with Hatcher Hill. 

Dover Signature Properties is developing the Tennessee Supreme Court building in Knoxville. Rick Dover said the supply chain is starting to come back, but costs are "sky high." 

Projects developed by the public are experiencing budget issues as well. In August, the developers of the mixed-use downtown stadium said construction would cost about $15 million more than previously expected because of added features and changes in pricing from supply chain issues after the pandemic. 

RELATED: Proposed downtown stadium projected to cost another $15.5 million more than expected

The City of Knoxville's new public safety complex is expected to cost double the original plan because of cost increases after the pandemic.

RELATED: New city public safety complex less than a year to completion, but at nearly double the cost

"It's so wild and inconsistent. It's just hard to put pen to paper on a budget right now," Hill said. 

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