Construction Industry Disruption
From ongoing labor shortages to questions about the future to supply chain issues, COVID has disrupted the construction industry in ways we’ve never seen before.
Here are a few stats to illustrate the point… and they’re jarring:
- Associated General Contractors of America (AGC)
- 89% of contractors are having a hard time finding craft workers
- 88% of firms are experiencing project delays
- 93% are affected by rising materials prices
- 100% of building contractors that work on federal government projects report at least some projects were canceled, postponed or scaled back
- National Multifamily Housing Council (NMHC)
- 75% of multifamily developers (who responded to their survey) reported construction delays
- Levelset – 2021 Construction Cash Flow & Payments Report
- Just 11% are paid in full on every job (an 82% drop from 2019)
- Only 9% always get paid on time (down 60% from 2020)
- Nearly 2 in 3 contractors support a subcontractor or supplier when they file a lien
It’s difficult out there no matter the industry.
Ongoing Supply Chain Issues
Yep, this one is still with us. Supply chain issues aren’t resolved, and these ever-increasing bottlenecks continue to compound for contractors who need parts. Look no further than a couple of recent stories:
- “China’s zero-Covid restrictions will impact global supply chain recovery as any small disruption in the country will likely lead to “ripple effects” across the world, according to the head of shipping at HSBC.”
- “KPMG’s Higgins says clients are redesigning their planning processes to give 120-day visibility, instead of 30 to 60 days’”
Add to this that material costs are rising and you find yourself in an inventory pickle. Do you order now and lock in a decent price, but have unused supply take up space and potentially add storage costs, or wait until closer to the start date and risk long delivery times or higher prices?
Flexibility Replaces Guarantees – Storage Solutions
Given all the uncertainty, it’s no wonder that flexibility is the only way to stay relevant. Being nimble and agile while doing all you can to minimize costs is among the few paths we can all take.
For some of you this has meant becoming a warehouse for your clients to manage the overflow of inventory. This isn’t ideal since there doesn’t seem to be an end in sight.
We have a solution.
Let us alleviate the burden of carrying excess inventory through our no-cost storage opportunities for your orders.
Providing smart answers for today’s unprecedented challenges is what we’re all about. Contact us today to discuss your options.