Labour shortages and supply chain bottlenecks are hitting small construction businesses hard
New research shows that construction project delays are 62% higher than pre-pandemic levels
In a survey from Software Advice, the construction industry is experiencing pains from supply chain disruption currently. The research found that 63% of survey respondents experiencing much longer time frames to produce raw materials for projects and 46% of businesses have had six-to-10 projects delayed in the past 12 months.
Almost overnight, the supply and demand for construction of every type changed due to the pandemic. And while some aspects are slowly starting to return to normal, the construction industry is still experiencing new trends never seen before. The survey showed that, due to these changes, 45% of respondents are shifting inventory management temporarily in-house and 41% are moving to a third party.
Survey respondents say labour challenges related to the pandemic as well as supply chain issues have shifted the way teams handle inventory management.
The research says that estimation and construction-specific project management software continues to be important to control costs, with over half (53%) of small construction companies implementing new PM software to support their business.
“If you haven’t already reconsidered how you’re managing inventory, you’re missing out on a possible opportunity to address procurement delays,'' says Olivia Montgomery, Sr. Content Analyst at Software Advice.