Construction Industry Hurdles: Succeeding Now and Tomorrow
There is no doubt that there have been many construction industry hurdles within these past few years. Supply chains have been through an upheaval, leaving many companies with their hands tied in meeting deadlines and providing adequate services.
So how do we navigate through these tough times? What is our best chance at not just surviving but thriving?
Knowing Where The Industry Stands
The truth is, unless we see more ups and downs in the lumber market, we are very close to our new normal.
The lumber market fluctuation has had a huge impact and has been the main source of construction industry hurdles that have come to light. No wood? Big problem! Before we know how to navigate these trying times, we first need to understand them deeply.
However, now that the lumber market has somewhat stabilized, we see a rise in supply chain issues for other pre-made or raw materials. With the increased housing demand, construction companies have been busy with work yet struggling through a steel shortage due to ineffectual supply chain crises. Many raw materials have been left on a ship without being unloaded or trucked out to different suppliers. Furthermore, labour shortages mean supply and shipping companies have longer wait times than usual, creating a backlog of orders fulfilled.
Manufactured Goods Slowing Production Time
In terms of construction industry hurdles, it’s not only raw materials that are slowing down our processes. Manufactured goods that complete projects in housing are being put on the back burner. Since steel supply and raw materials have prioritized supply chains, manufactured goods have taken a back seat as a result. The chain reaction of all this is astounding and has left construction companies struggling to keep up with deadlines.
The Future for the Construction Supply Chain
Considering all this, it is clear that the future of construction will be a costly one. A byproduct of this supply chain breakdown will surely be inflation. While there have been no increases in inflationary product cost yet, an indicator used by the Federal Reserve System shows that inflationary future rose in July by 3.6%, the highest it’s been in 30 years.
Navigating the Difficult Hurdles
So how do we meet these issues head-on, ensuring we cater to our customer’s deadlines while also remaining true to budgets and cost? The fact is that this is a question everyone is asking right now, not just a select few. There are 3 C’s that will help get us over construction industry hurdles.
The only way to get through these trying times is to keep as open and honest communication as possible with all members of construction businesses and suppliers. What enables failure and the downfall of construction corporations is when communication fails. There are many pieces moving at all times, which requires communication to be the main priority. Customers deserve to know accurate timelines, or if timelines change, employees need adequate notice of alterations, and stakeholders need to know how projects are progressing. When communication fails, companies fail.
- Creating an Accurate View
At this time, data is incredibly important. Where communication brings us together, data keeps us grounded. Ensuring you have accurate data projections for clients is key. Also, ensure your suppliers keep strong and accurate data that you can depend on while giving you an advantage in these trying times. The farther ahead your dependable projections are, the better.
This all being said, companies facing construction industry hurdles should have several alternate plans, requiring leaders to work smarter, not harder. Having an accurate view can prepare for alternate plans if things go awry.
Collaborating with other members of your construction company or suppliers, sharing ideas and plans can help us all arrive at a place successfully instead of struggling alone. These challenges are going to become emotional and have great effects on a company’s workforce. We will have to coach, support and guide each other in learning this new landscape.
Whether you’ve struggled during this time or thrived, we can all agree that supply chain issues are a burden. The construction industry hurdles keep coming and what gets us through is that we are all trying our best to succeed.
Are you looking to improve workplace efficiency and safety with an experienced, trusted team? Look no further than Innovative Construction Group. We offer free resources, knowledge and support for your projects during this tough time.
Enjoyed this article? Here are three more to help you learn more:
- ACADEMY OF INNOVATION
- WHY SOFT COSTS ARE IMPORTANT TO CONSIDER WHEN BUILDING A HOME
- STANDING OUT FROM THE CROWD: ICG’S BUILDING DESIGN PROCESS