5 Supply Chain Disruptions in the Construction Industry

In recent years, construction companies have faced numerous supply chain disruptions. The construction industry’s OEMs have been struggling with not just the pandemic, but also increased demand due to a shortage of skilled personnel and resources, as well as new restrictions such as environmental and safety requirements.

High Demand

Global imports account for around 30% of building needs in the construction industry. As a result of the pandemic, the worldwide market for raw materials declined, causing an increase in demand for local market raw materials and resulting in high demand for certain products.

Labor and Skill Shortage

Due to the pandemic, it was difficult for construction companies to pay their employees without employment. As a result, layoffs started to occur. Despite the fact that construction projects have began to resume,  it was difficult for construction companies to rehire workers. Skills shortages, in addition to labor constraints, have been a growing concern in this industry. Furthermore, construction companies are finding it more difficult to hire individuals with construction skills and knowledge as workers retire.

Material Shortage

During COVID-19, the number of global imports have declined, and the building materials supply chain do not have enough material to meet demand, resulting in a construction materials shortage. As a result, construction product sales have soared.

New Environmental Protection Regulations

New environmental laws and green construction practices are progressively making their way into the construction industry. These new laws target air pollution, water quality, biodiversity, waste and more, effecting construction businesses as they will have to incorporate them into new and ongoing projects, as well as use particular materials or gather new product, or face a heavy fine.

Building Safety Bill

OSHA has recently implemented new building safety regulations. These regulations set the bar for how commercial buildings are constructed, maintained, and made safe. These new standards will also include revisions to fire safety and the quality of construction products, as well as new levies and taxes on developers.

The list above is only a sample of the significant supply chain issues that construction OEMs are dealing with. Aside from increasing market demand, skilled labor shortages, part shortages, and new laws and regulations, shipment delays, for example, are another factor affecting the construction business. Outsourcing aftermarket production to a 3PP or 3PL like NewStream Enterprises, LLC will help you handle the stress of these adjustments and get your supply chain back on track. To help mitigate new environmental regulations, our professionals are equipped with the appropriate technologies and are ISO 14000:1 certified.

Are you ready to cross these worries off your to-do list so you can concentrate on your core strengths and sales growth? Talk to our experts today and let us assist you in rediscovering your love for your supply chain.