Disruptions to construction supply chains just keep coming, and companies are being forced to find creative solutions as it becomes more and more obvious that 2022 will not see a return to “normal”. Associated Builders and Contractors of Wisconsin asked construction CFOs to share their workarounds in the two areas in which they are most impacted: material shortages and labor shortages.
When it comes to material shortages, many companies are choosing to order products well in advance of when they will need it, sometimes even before knowing if they will need it. We discussed this in an earlier blog. Some companies are choosing to repurpose old products (i.e. doors, light fixtures, etc) that they usually would have replaced with brand new items as a way to keep projects moving forward. Of course this also depends on the client’s willingness to use recycled materials and some contractors are finding clients are more open to paying the increased cost of new materials when presented with the options.
While supply chains are expected to (eventually) return to smoother, quicker operations, it is unlikely the labor shortages will end any time soon. Like many other industries, companies in the construction field are learning a hybrid workplace is one of their best retention tools. Employees appreciate the flexibility and often perform better than they would with 40 hours in the office. Since it is challenging to find new team members right now, the best strategy may be to do all you can to keep the ones you have!
Whether building and construction or any other industry, we are all in this together. Plymouth Foam, an Altor Solutions Company, is grateful for all of our customers who are contacting us for advanced ordering and creative solutions that we can help with (firstname.lastname@example.org). We look forward to continuing to serve you.