Navigate Construction Supply Chain Issues with Innovative Software
Material and labor shortages, rising prices, and construction supply chain issues are the main obstacles to builders’ construction projects. Many small construction companies fear these obstacles will only grow with increasing inflation rates and costs.
These barriers only delay constructing new homes, costing builders, general contractors, subcontractors, and material providers time and money. The construction industry does not have to be stopped by the current obstacles in the market. Cutting-edge technology can help builders thrive despite challenging economic conditions.
Understanding Supply Chain, Material, and Labor Shortages
Supply chain management issues are the primary reason why construction projects are delayed. Small construction businesses have experienced much slower product deliveries. Due to Covid-19:
- Production declines along with consumer demand surges have significantly disrupted the supply chain. Builders and material providers are demanding construction materials to meet buyer needs; however, backtracked production can’t meet those needs.
- Transportation constraints are rising with increased costs and reduced availability. The continuous labor shortage in the trucking industry makes transporting goods to construction sites difficult and costly.
Building material cost increases, supply chain issues, and increased demand have led to widespread material shortages. Over 90% of builders report lumber, appliances, and other essential construction material shortages in their projects. More prospective buyers are demanding homes, so builders are actively trying to meet this need. Yet, material production has fallen short, negatively impacting everyone in the building process.
The lack of materials can sometimes force builders to use low-quality materials instead of higher caliber construction materials. Undermining construction quality with poor building materials leads to unwanted consequences for both the builder and the buyer.
The US Bipartisan Infrastructure Law investing $550 million into construction projects had made over 3.2 million jobs available. Although the positions are readily available, they are not being filled.
At the end of 2021, more than 400,000 construction jobs were unfilled, even though employers are offering competitive pay. The unfilled construction positions significantly contribute to the slow-down in building for small construction firms. There are multiple reasons for the labor industry stagnation:
- The retirement of over 3 million baby boomers.
- Unemployed individuals are finding construction jobs unappealing because of the mental and physical toll it can take.
- Many immigrant workers or those with working visas have decided not to return to the construction industry for various reasons.
How Do These Construction Shortages Impact Construction Businesses?
The delayed construction supply chain and a shortage of expensive materials make projects more expensive to fund and extend timelines. Moreover, the current labor shortage has decreased construction productivity and has been costly for builders, as overtime doubles and wages rise.
These issues cut small construction companies' profit margins and prevent them from scaling their construction projects.
A Solution For Construction Supply Chain Issues
Innovative software can help in combating construction shortages and obstacles. BIMQuote technology enhances construction management by making projects more cost-effective and innovative. BIMQuote software allows builders to create digital floor plans that represent everything builders need to consider when completing construction.
This technology enables builders, material providers, developers, and contractors to take control of construction projects for success.
How BIMQuote Software Alleviates Construction Supply Chain Issues and Construction Shortages:
Forecasting For Material and Supply Chain Issues
BIMQuote technology generates quantity takeoffs with a complete material list for a project within minutes. The BIMQuote project management tool allows all parties involved in the construction project to communicate directly on the project management platform.
BIMQuote technology adapts with construction industry flexibility by updating prices, availability, and delivery times for materials. This allows for enhanced forecast project time schedules. The software also generates a project calendar with milestones accessible to general contractors, material providers, and subcontractors. A range of materials with varying prices are offered to accommodate builders’ and homebuyers’ budgets.
Builders no longer have to estimate when construction materials should be ordered to arrive on time. The software automatically sets dates when materials should be ordered to avoid supply chain delays and arrive on time for construction. This saves hours of work for employees who have to forecast dozens of delivery schedules throughout a project.
Builders do not have to compromise construction quality simply because material prices are rising or availability is low. BIMQuote has developed over 20 national accounts to connect major material providers with small construction companies. The best materials at the best prices are located to improve the procurement process and lead time in construction projects.
Improving Labor Productivity
BIMQuote accounting, project management, and communication tools have enhanced construction project efficiency by 20% for all workers involved in construction projects.
Employees can efficiently finish projects and move on to others using our building information model technology. The intuitive project management system coordinates subcontractor timelines and reduces schedule conflicts.
BIMQuote technology helps small construction businesses build more homes to meet the increasing home buyer demand while raising their profit margins.
Want to know more about innovative technology that can help you navigate economic adversities? Register with BIMQuote to take control of your building projects.