In the past few years, the supply and demand of construction materials has significantly increased. With the pandemic, most suppliers have changed their ways of providing products as well as the way products are received.
Due to the pandemic and other circumstances, many factories and businesses closed up or even shut down. This caused construction companies to be overwhelmed and backed up when it came to supply and demand. Businesses have to catch up with competitors as well as the demand for the product or services. It can be estimated that the construction industry will not make a full recovery until 2023.
The way businesses and suppliers go about the market has completely changed. This includes price hikes and the shortage of materials. The prices have gone up 70% since the pandemic hit. The supply chain is struggling due to businesses not being able to afford and make up the difference between the years. This leads to the inflation of the market and the decisions to invest in a product at a higher price then watch the price fall again. Businesses are torn between these two decisions. This issue has been ongoing but has been worse since the pandemic hit in 2019.
How can businesses survive this? The answer is to invest right now to avoid being further left behind. Usually, businesses and suppliers are cautious about their approach to purchasing materials, but now they need to place their orders now. The reasoning for this is because since this change has affected most construction companies, other businesses are demanding these products and materials at a rate that the suppliers cannot handle all at once. In order to recover from the recent recession in the supply chain, the construction industry needs to be prepared for what’s next.
The supply chain difficulties have been chaotic, but it’s nothing we can’t fix. Businesses and suppliers need to be confident and catch up to speed by purchasing materials needed, preparing for the future and creating balance within the supply and demand chain.
Jerdon Enterprises, L.P. has over three decades of engineering and construction experience to provide the best results for your project. View our portfolio to check out projects we’ve been involved in, as well as our services to see what we can do for you. Have a question regarding employment opportunities or to discuss a potential project, contact us today!