It is now seven months since the ABC Supply Pro Council posted this article, and the supply chain challenges it cites are still an issue. If this pandemic has taught us anything, it is that we must continually assess, and adapt to, each unique circumstance that presents itself during these uncertain times in order to secure success.
The ABC Supply Pro Council is a group of experienced associates from across the U. S. that aims to provide contractors with industry advice and insights to help them seize opportunities and overcome challenges. What follows is an excerpt of its September 10, 2021 article; click here for the full version.
7 Tips for Navigating the Building Materials Shortage
How Adapting Your Processes Can Help Make Handling Supply Chain Issues Easier
The pandemic has created a building materials shortage and triggered a home building and remodeling boom, but you can make navigating the price increases and delayed materials a little easier. Consider these recommendations.
- Place Orders as Soon as Possible
Materials can be delayed by weeks or even months. The earlier you order, the better your chances of receiving materials by the time you’re ready for them.
- Make Sure You Have Accurate Data
With long lead times, it’s crucial to have the most current pricing information and to measure correctly. When in doubt, order a little extra material to ensure you’ll have enough.
- Lean On Your Suppliers for Support
Your building materials suppliers can update you on what they anticipate having in stock. They can also provide letters from manufacturers verifying price increases, which can help justify additional costs to your customers.
- Educate Your Customers
Your customers may not be aware of the pandemic’s effect on the construction supply chain. Explain that many manufacturers are dealing with backlogs, and the high demand for materials is driving price increases.
- Consult With Lawyers
Add a price escalation clause or language related to delays to ensure you’re not in breach of your contract or stuck absorbing material costs you can’t afford.
- Adapt Your Processes
Consider processes that could be adapted to better serve your customers during this challenging time. You may also want to reconsider the material options that you share with your customers.
- Focus on Stability
With so much fluctuation in the industry, it may be safer to avoid taking unnecessary or costly risks. It’s hard to predict how material delays and rising costs will affect your business.
By making some changes to how you do business and relying on your suppliers for support, you’ll set yourself up for success. Visit the ABC Supply blog to learn more about how contractors are adapting to the challenges of the pandemic.