Tackling Supply Chain and Labor Constraints in Construction

Many of us still face sourcing issues and labor struggles. Even though raw materials costs are no longer rising across the board, there are still issues. Transportation costs and speed have impacted the construction industry. We’re still behind in labor. Baby Boomers are on their way out of the workforce. The youngest talent bases have not been developed enough. Yet, we’re expecting continued construction growth in almost all areas other than retail. How is Elexco impacted and what are we doing? Let’s look at a few key areas.

Growth

“Nearly three-fourths (74 percent) of the respondents expect their firm’s headcount will increase in 2022,” according to Associated General Contractors of America (AGC)’s Hiring and Business Outlook Survey, which drew more than 1,000 responses from contractors in every state.

Elexco expects infrastructure to increase in highway, bridge, transportation, water, and sewer as a result of the Infrastructure Investment and Jobs Act (IIJA). Private sector warehouses, hospitals, and other healthcare expect growth. Elexco has already seen an increase in broadband-related construction.

“Construction starts should show notable improvement in 2022, fed by the strengthening economy, the numerous projects in the planning pipeline and the recently enacted infrastructure program. This optimism, however, will be countered by continued high material prices, shortages of key materials and an acute shortage of skilled labor,” reported For Construction Pros.

Technology

Technology improvements in construction can reduce the need for skilled labor and attract a new generation of workers that crave a high-tech environment. Check out more insights on technology in the construction industry here.

Labor

The national and local labor force is currently undersized. Over the last several years, birth rates are low, and so is immigration in the last few year. Combine that with Baby Boomers and even some Gen Xers leaving the workforce, and you can see why our talent pool is small. We don’t have enough carpenters, electricians, plumbers, and other skilled construction workers. We expect labor costs will continue to rise even as supply chain issues improve.

Elexco Plans Ahead

What are we doing? Working to integrate more technology. Planning ahead for growth. And positioning our company to take advantage of opportunities even in the face of shortages. Our ongoing commitment to training and safety ensures that our workers stay safe and perform at their best.

Training and Compensation

Elexco offers comprehensive training to attract new employees and keep current ones safer. At Elexco, new employees work side-by-side with a training partner until they’re ready to work independently. All employees enjoy ongoing safety training. This time of year we take extra care to ensure that our employees are mindful of heat-related illnesses. Learn more about the benefits of working with Elexco here.

Focus on Efficiency and Quality

At Elexco, our projects are organized, and our crews are consistent throughout a project. In addition, pre-task planning and reducing the number of times we need to move equipment streamline our tasks, making us more efficient.

Quality control is critical for our people and materials. We use technology on our job sites to improve our planning, safety, and execution of tasks. Drones can be used to survey the site for potential hazards; they can go where people cannot go safely. Checklists and good housekeeping ensure we leave at the end of the day ready to start in the morning without any delay. We don’t allow supply chain issues to force us to purchase inferior materials. All our supplies are checked for quality. We believe rushed work and low-quality materials are of much greater cost than doing it right the first time. At Elexco we take pride in each job we do.

Be sure to follow us on your favorite social media for updates on what we do and how we do it.

 

Resources/Citations

https://www.forconstructionpros.com/equipment/article/21993023/2022-state-of-construction-new-year-brings-more-uncertainty-with-supply-chain-and-labor-concerns

https://www.agc.org/sites/default/files/Files/Communications/2022_Construction_Hiring_and_Business_Outlook_Report.pdf

 

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