If your construction projects are struggling during the COVID-19 pandemic, you're not alone. Supply chain shortages have left industries across all sectors around the world shorthanded. The construction industry, in particular, has taken a heavy blow. With imports stalling to a crawl with month-long delays, it's become increasingly difficult to acquire materials and tools in a timely manner.
Unfortunately, there's no immediate solution to this problem. However, it helps to know that we're all in this together. While we can't help you get what you need faster, we can use our experience to identify the specific problems caused by the delays (besides late and slow shipments), so you can plan ahead.
Knowing what to expect with delays can help you allocate your budget appropriately and manage your time and expectations. Of course, these steps alone won't improve shipping times or help complete work any faster, but untangling these logistic issues can take some of the stress of the pandemic delays off your plate. Read below to learn what to expect with COVID-19 related shipping delays.
At the heart of the COVID-19 shipping delays is a worker shortage, but even that is more complicated than it may seem at first. It's not just a matter of not having enough people working in manufacturing or shipping to keep up with demand or large numbers of people quitting those jobs. In many cases, the shortage results from companies taking strict safety measures to protect employees.
To slow the spread of the virus, countries worldwide have set a strict limit to the number of people they can have in their facilities at one time. Such measures have left most sizable businesses understaffed for the time being, but manufacturing, in particular, has been hit hard. As a result, there are not enough hands to complete material manufacturing tasks quickly.
In addition to construction materials, companies have reported difficulty getting safety equipment for their construction crews. While the PPE related to the pandemic, like masks and sanitizer, was expected to be in high demand, supplies like workman's gloves, safety vests, and goggles have fluctuated in availability, too.
The shipping industry has had to cut its number of employees for similar reasons, but they face even further complications than other sectors. Travel restrictions are in place at many ports. These restrictions have left open entry points busier than ever, throwing schedules into flux.
Shipping routes themselves have experience jams, too. The most notable case has been in the Suez Canal, but we can expect similar jams as shipping companies navigate their way through COVID-19 complications.
With less material production taking place than before and shipping becoming more difficult, the average price for materials continues to climb upward. If you've experienced this yourself, you've no doubt seen the overall costs of your projects reach new highs. But, unfortunately, the problems don't end with material costs.
Overall higher project costs have made it harder for some project managers to get the necessary funding to build. Potential investors see construction during the pandemic as high-risk for getting their return. Projects built for consumers, like houses, find themselves with fewer customers who can afford the final product.
When it comes to minimizing the impact shipping delays are causing the construction industry, almost every approach focuses on lessening the financial risk you undertake. Unfortunately, there's no workaround for the speed issues. However, if you set reasonable expectations for delivery times by communicating with your contractors, time doesn't have to be a major issue.
As for money, you can reduce some of the risks by negotiating terms with your contractors. Arrangements that may have seemed unreasonable before COVID-19 hit appear much more reasonable now because suppliers are struggling to meet demand like everyone else.
Some agreements include:
Nearly two years into the pandemic, all contractors should know what delays their source manufacturers are experiencing. If they can get you those estimates early on, you can work them into your budget during the planning stages rather than after the fact.
Some contractors willing to cite a specific timeframe for delivery will agree to certain terms if the shipment takes longer to arrive than they cited. Some will simply return a deposit, while others may be willing to pay for time lost. Either way, exploring these terms can see you get some of your costs returned.
Though there's no guarantee they can procure the materials you need domestically (manufacturing shortages are occurring everywhere), it's worth looking into. They may ship sooner, but even if there is still a delay, your shipments should cost less overall.
Understanding why delays happen with specific suppliers can help inform future buying decisions during the pandemic. Take a closer look at the unique factors impacting potential suppliers to see how they influence shipping times. Unfortunately, many of the once-reliable manufacturing sources are struggling to keep pace.
Regional delay issues can fall into three broad camps:
You don't need to keep a close eye on international news to get a good grasp of these difficulties. If you aren't comfortable doing the research yourself, a good supply contractor should be willing to do it on your behalf.
Even when supply chains adapt to the "new normal" and something close to regular trade resumes, we can carry the lessons learned by the construction industry forward to minimize the impact such disasters may have in the future.
Of course, it's a common mistake in any industry to come out of a global event like this and assume the worst is behind us, but it's never a bad idea to stay prepared. While stockpiling materials for potential future projects isn't always reasonable, you can still protect yourself from future supply chain issues if you're observant.
Perhaps the biggest step you can take is to keep track of which contractors and manufacturers you worked with, and note who was the most accommodating to your needs. Those who were flexible and understanding will likely remain a huge benefit to your projects regardless of the situation. Maintaining those business relationships is key to ensuring your company's survival, with or without a global health crisis.
Staying on top of the latest industry news and practices is a surefire way to give yourself an advantage. But between planning and executing projects, who has the time to keep track of it all?
With Kolbi Pipe Markers on your side, you don't have to worry.
As a company, we've made it our mission to keep our customers and readers up-to-date, even in these complicated times. You can subscribe to our newsletter to get future updates and insight from our team. Even when the pandemic ends, we'll be here helping construction professionals perform the best they can.