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Construction industry recovers after COVID-19 [Column] – Reading Eagle

The construction industry is heavily influenced by COVID-19 and is constantly pivoting to adapt to ongoing shocks from variants of COVID-19. Concerns in the construction industry include hiring challenges for construction workers, significant logistics and supply chain disruptions, rising costs, resistance to COVID protocols and recommendations, and ongoing uncertainty around us. There was a complete storm.

Glen Eversole

Construction costs are expected to continue to rise until 2022, primarily due to inadequate material and labor availability that constrain recovery by at least the first half of 2022. Data from the US Bureau of Labor Statistics show that never before has such a high material cost. Construction (steel, lumber, aluminum) rose very fast at the same time.

Two lasting challenges that have negatively impacted the recovery of the construction industry in 2021 will continue after COVID-19.

Supply chain delays and record high costs for multiple key building materials continue to weigh on project completion times and profitability.

A variant of COVID-19 could significantly slow economic growth and future waves of pandemics could make recovery even more painful.

Persistent logistics backlog with continuous global production and shipping shutdowns with the COVID-19 variant limits the ability of suppliers to keep up with demand. When production resumes, shipping costs will increase.

Labor availability continues to disrupt the recovery after COVID-19 and can have the greatest negative impact on the return of the construction industry and individual contractors to profitability. Unfortunately, construction labor challenges are expected to worsen next year, with construction labor costs rising in 2022.

The big question about the labor market is how to fix it after the pandemic. Labor shortages are a global problem for customers due to concerns about not having enough workforce to fulfill their contracts. The most difficult locations for construction crafts to fill are workers, carpenters, and heavy equipment operators. Project managers and construction supervisors have the most difficulty finding a full-time position. After the pandemic, the construction industry will continue to struggle to hire new entrants with the necessary skills into the workforce.

Rising raw material costs are already putting a small margin on construction companies. We need a strategic approach to tackle this challenge, such as moving to off-site manufacturing instead of building on-site. It is also necessary to expand the use of new technologies to increase the efficiency of the project delivery system.

Given the widespread uncertainty in the post-pandemic world, it will be difficult for construction companies to be confident in their plans for 2022 and beyond. Still, the construction industry has a great opportunity to recover from the COVID-led crisis. Now is the time to make a breakthrough and tackle the structural challenges that have historically hindered the construction industry in terms of growth, productivity and profitability.

Socrates offers the construction industry some great advice on recovery after COVID-19.

“The secret of change is not to fight the old, but to focus all our energy on creating the new.”

A longtime columnist, Glenn Ebersole is a registered professional engineer, strategic business development / marketing executive and leader in the AEC industry and related areas. He can be contacted at jgepsu21@gmail.com or 717-575-8572.

Construction industry recovers after COVID-19 [Column] – Reading Eagle

Source link Construction industry recovers after COVID-19 [Column] – Reading Eagle

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