What Supply Chain Challenges Are You Facing in the Construction Industry?

I was recently at a large construction event that was attended by construction companies, suppliers, safety consultants, and others in the industry. These events are always a great time to connect with those in the industry and get their take on what is affecting their businesses. 

At this event, I stopped at the booth of a large, well-established electrical supply vendor. I asked the company representatives about a specific electrical service panel for home usage. As our conversation continued, they shared about the challenges of electrical equipment availability, specifically when it came to service equipment like pedestals, switch gears, and panels. They said the wait time for service equipment was about 60–70 weeks. However, they indicated that interior materials, such as wire and switches, were available off the shelf. 

Later, I spoke to an HVAC contractor about supply chain issues. The HVAC contractor mentioned that commercial HVAC rooftop units were challenging for them, with lead times of 60–70 weeks. In contrast, home furnaces and garage heaters were available and not a problem. Their bigger challenge was that projects could not move forward on schedule due to the wait time for materials, which affected payout requests. This affected the contractor, subcontractor, and their suppliers. 

As I moved on to other booths, I thought about what I would do in that situation. Here are four things that came to mind:

1. Stay in contact with suppliers for weekly updates on material prices and availability.
2. Consult with my construction attorney on contract language in the event of a project delay.
3. Consider shortening the time to hold my pricing when presenting a bid.
4. Be transparent and upfront with my clients about material delays and price increases.

If you are in the construction industry, what supply chain issues are you currently experiencing, and what steps are you taking to help your business move forward?