Charlotte’s Dream Homes Blog

How Covid 19 has impacted the supply chain of the construction industry

supply chain of the construction industry

The Covid-19 global pandemic has drastically impacted all human activities, causing multiple problems in the supply chain.

The construction sector is one of the most affected concerning this issue. The continuous delays in the delivery of materials, the shortages and the overpricing make the development and completion of projects very difficult and  has totally altered the way it was done before the health emergency.

Today, Dream Home Builders and Remodelers bring you some points of interest that those in charge of the development of construction projects have put into practice to manage the acquisition of the different materials.

 

How Covid 19 has impacted the supply chain of the construction industry

 

New situations, new solutions. The key is to adapt to change.

It has been a real challenge to solve the different problems that the construction supply chain has been presenting from 2020 to the present day, however, it has brought resilience to face what may come in the future.

 

  • The rising cost of some materials, for example, wood, among many more. According to Fortune on March 31, 2021 “Wood production has reached its highest level in 12 years, however, wood prices continue to rise in 171% since Covid started.”

Undoubtedly, the rising cost of materials brings to the table an even greater impact on construction: the cost of replacing a building after a disaster will no longer be the same.

 

  • There is also the need to train personnel for a new and different way of managing the materials of any construction site through planning and organization: this means that what was previously a simple process became considerably complicated thanks to Covid-19 and its repercussions on schedules, quarantine, protocols, transportation, and other factors.

Some of these issues could be alleviated through inventories to have control of the material that is delivered to workers, in what area, and when it’s finished. In short, these details facilitate making orders on time and only of what is necessary.

 

  • The recycling of materials is booming in the search to reuse material leftovers, with some of them being sold to sub-contractors that could give them a new use. This is positive because it helps to preserve energy resources, and also takes advantage of resources that will no longer be classified as unusable, reducing waste.

 

  • It became imperative to develop a great logistical capacity on the part of the companies’ managers for the purchase and delivery of materials, managing alternate entrances and exits to shorten time and distance by considering what could be restored or improved at that point in the supply chain, in addition to other options that were found to enhance its operation.

 

Covid-19 greatly impacted the supply chain in the construction world

 

 

Although these changes have occurred on the fly, they are an example of what humans are capable of when faced with unexpected situations and chaos. It also positions the managers of these companies in a totally revolutionary leadership.

It is no longer about personnel management or development of a construction site only, now it is all about planning and organization to put that supply chain to work without affecting daily work, on-time delivery of materials, distribution, etc. It is also about the manager as a trainer to prepare his employees to join this new way of responding to the needs of this industry.

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