Journey Journal
Posted on October 06, 2022
Rising inflation and supply chain issues have been a hot topic in industries nationwide throughout the pandemic and well into 2022, with the construction field being impacted significantly.
One of the ways construction has been most heavily impacted is the rising demand in project starts. Ultimately, this pent-up demand coming out of the pandemic increased the need for project materials, supplies, and skilled labor; further prompting project managers and superintendents to closely analyze their budgets, material costs, and project schedules.
Additional stressors like disruption in delivery time, further promote schedule delays. All of which could be categorized as the current “pain points” of the construction industry.
This whitepaper provides information on common supply chain issues and gives you a glimpse inside the strategies Journey has developed to combat these challenges. You will learn more about the industry changes and challenges Journey has experienced and gain insight on the solutions we have created to combat these issues.
Common Industry Supply Chain Issues
- On-time delivery of materials vs. Stored Materials – The construction industry was once sure about deliveries, as most were on time and fully stocked. In today’s market, common fears include not having needed products on hand or having said products delivered on time to aid in project completion.
- Early Collaboration – Pre-pandemic, our planning and collaboration schedules fell much closer to project kickoff. Now, construction businesses are faced with the issue of pre-planning their planning and collaboration schedules, just to stay ahead of the game. Getting everyone’s schedule, budgets, and timelines can be tricky, especially if the project is months down the road.
- Inflation compounds supply chain issues – Though we mentioned this previously, it deserves a spot on our list as many construction companies and employees continuously worry that the impact of inflation on the supply chain will diminish their ability to take on projects in the future. These issues can wreak havoc on material delivery, and project completion, and even cause shifts in budgets.
- Vetting of suppliers and vendors – Other construction materials, not just building structure components (switch gears, aggregate/cement, roofing, and insulation), are also impacted by ongoing market issues. These materials are distributed and vetted by suppliers and vendors, who may decide that they can’t afford to stay open due to the ongoing inflation or will hike their prices to keep up. This can create fear amongst construction companies as they continue the battle to find the right materials within budget.
All these issues look different from company to company, but the main concept is that these issues are a burden and obstacle to the construction industry. In 2022, it’s a given that construction companies must dig deep and find a stance in confronting these issues head-on.
At Journey Group, we proactively work with project owners, design teams, suppliers, and vendors, as well as other construction teams to relieve these supply chain issues and fears. We communicate daily with our partners and demonstrate our ability to quickly recognize and adapt to changes in the market and environment.
Our process works because we apply it to specific projects with the understanding that the market changes rapidly, giving us the opportunity to be proactive or, as we like to call it, initiate our key to success. To find your key to success, you must first assess whether your business is facing the following difficulties:
- Are you currently building and experiencing these challenges firsthand?
- Are you constantly waiting on project materials to arrive?
- Are you struggling with vendor/supplier relationships?
- Do you find yourself delaying project start times or end dates?
- Does your team need a stronger procurement management strategy?
- Has inflation impacted your strategies and shifting priorities?
If you answered yes to any of these questions, sign up to receive an inside look on Journey Group’s Ten Winning Strategies to Combat Supply Chain Challenges and Inflation!