Construction Rebound Requires Reliable Supply

As rebounds in construction and manufacturing take shape in 2022, navigating the process continues to be filled with twists and turns.

From our experience in the field, the conversations are challenging the industry’s commitment to decarbonization in the face of surging steel demand—calling into question whether steel is ready to get clean and go green.

Between June 2020 and June 2021 steel mill products have jumped 88 percent for that same time frame. Yet, we have also seen a decrease in contractors’ bids. The gap is counterintuitive. Why would contractors lower their bids in an environment of increasing supply costs? Our clients shared that last year there was a drop in the number of projects and now contractors are cutting their profit margins for new work.

Overall, we see supply shortages as a more extensive problem than price fluctuations. Plus add to the mix the challenge of finding skilled workers. Price cuts may be workable for the short term, but for a more long-term solution, contractors and project managers need to lock up a solid pipeline of materials.

We partner with a responsible supply manufacturer who can get the material. Once that supply channel is reliable, we predict that projects will again ramp up.