The dockworkers’ strike by the International Longshoremen’s Association (ILA) is creating significant concerns for the construction industry. This strike affects East and Gulf Coast ports, potentially leading to shortages of construction materials, increased prices, and delays in deliveries. The union went on strike due to disputes over wages and a ban on automation of essential machinery. Experts predict that if the strike extends beyond a week, delays could persist for weeks or even months due to the backlog of shipments.
The affected ports are key points of entry for a variety of construction supplies, including structural steel and equipment. On top of that, the devastation from Hurricane Helene, which caused major damage in the Southeast, may further compound these supply chain issues by increasing demand for materials needed for repairs.
Construction industry experts suggest that contractors should consider mitigating actions, such as increasing inventory levels, designing alternative supply routes, and considering air freight for critical items.
Advice for Contractors: How to Prepare for Potential Material Shortages:
- Assess and Prioritize Materials Needs: Review ongoing and upcoming projects to determine which materials are most crucial. Create a prioritized list of critical supplies, focusing on those that are difficult to substitute or find alternatives for.
- Increase Inventory for Critical Items: If possible, stock up on critical materials that might be impacted by delays. Items like structural steel or specific finish materials could be in short supply if the strike continues. Holding extra inventory may help you stay on track when others are experiencing shortages.
- Diversify Your Supply Chain: Work with suppliers to explore alternative sources of materials. Look into both nearshore and local manufacturers, which could help you bypass the affected ports entirely. Diversifying your supply chain now can reduce risks and provide more flexibility when things get tight.
- Consider Alternative Shipping Options: While it may come at an increased cost, air freight could be an option for your most important materials, particularly those that could bring an entire project to a halt if delayed. Weigh the cost against the potential financial impacts of delays on your project timelines.
- Communicate with Clients and Stakeholders: Openly communicate with clients and stakeholders about the situation and how it could impact project schedules. Transparency can help set realistic expectations and allow clients to prepare for possible delays.
- Be Flexible in Project Scheduling: Review your project schedules to determine where you can add flexibility. Perhaps there are tasks that can be moved up or substituted while you wait for delayed materials. Being adaptable will help reduce downtime and keep projects progressing.
- Plan for the Worst, Hope for the Best: Construction is all about managing risks. Create contingency plans to handle extended delays and increased costs. Develop alternative project scenarios and identify tasks that can be fast-tracked if delays occur. This proactive approach can save a lot of stress down the line.
The dockworkers’ strike is a reminder of how quickly supply chain issues can arise and disrupt construction schedules. By staying prepared, communicating effectively, and considering alternative strategies, contractors can help minimize the impact of material delays on their projects.