We asked suppliers and manufacturers about their take on the current construction business climate.
Here’s what a few of them had to say:
Crew workers are still hard to find. Increased payroll expenses due to increased poaching in a very limited labor pool are driving building prices up to dangerous levels. The balancing act of price, profit, and pay scale is extremely challenging. The bright side is that demand remains steady in our markets.
Matt Greiner, Owner/COO, Greiner Buildings
Tough times coming when it comes to finding qualified, experienced workers. There aren’t enough human beings to do the work that’s necessary. Dwayne Borkholder (Borkholder Buildings) and I developed the Rapid Frame System so one person on a skid steer can set a wall section. You don’t need three or four guys to frame a wall. We can address personnel shortages with technology and innovation.
Todd Meinhold, Ridgeline Safety System
Finding and retaining employees is key to success in any climate, especially now. We here at Levi’s Building Components believe company culture matters, and it is proving to be a valuable part of our formula for success. We are living our core values of Integrity, Quality, Service, Collaboration, and Growth. To our employees and customers, it’s known as the Levi’s Experience.
Mike O’Hara, National Sales Manager, Levi’s Building Components
While the worker shortage and supply chain challenges of the past couple years haven’t gone away, we’re seeing suppliers and contractors better adapt to managing them. We’re seeing more contractors than before tapping into technology to do more work with fewer people, and we at ABC Supply have been providing more services and tools to make contractors’ jobs easier. We’re anticipating 2022 will be a successful year for us and our customers, despite the challenges.
Mike Jost, Chief Operating Officer, ABC Supply
What a year so far! The word which comes to mind is “Adaption.” While supply chain and upward cost pressures continue, we as an industry have learned to adapt. This has served us well and will continue to serve us as we move forward. It is a testament to the quality people in our industry. Generally I am seeing business remain strong. Some slow down may be occurring but this can be expected after the unprecedented past couple of years. What we may see as a slow down can to some degree be attributed to a normalization of an unsustainable growth pattern. I remain very positive about the metal roofing and post-frame building industry where I live.
Randy L. Chaffee, Source One Marketing, LLC
S-5! distributor orders are up significantly over 2021. However, shipments are flat due to backlogs caused by supply chain issues and raw material availability. Our advantage is our distribution model. S-5! products are on shelves nationwide—always. Labor shortage is rarely a problem. We have a reputation in the industry for doing things The Right Way™. We are a privately held company with a comfortable working environment, and values that attract great talent and retention.
Rob Haddock, Founder and CEO, S-5!
Business is very strong – momentum from 2021 has continued into the first six months of 2022. I expect the balance of the year to remain at the same pace. Good news for the industry: There are new post-frame builders entering into the market to service and support increased demand for post-frame constructed buildings. These new builders are looking for innovative products and services to provide a competitive advantage to build their respective businesses. In addition, consumers new to the post-frame industry are also driving new innovative designs and services in order to meet their individual needs. As an innovative leader, our ICC-ESR certified Perma-Column family of products provides a permanent foundation solution that supports builder and consumer needs. These are very exciting times for our industry…I’m looking forward to the journey.
Mark Stover, President, Perma-Column LLC
The climate of the Construction Industry has seen unprecedented growth despite the supply issues that dealers, distributors, and manufacturers have had to overcome. The import supply chain has been greatly affected by the rising costs of containers, delays in deliveries and even partial shipments, which has left the domestic manufacturers to fill the needs of the increased growth despite dealing with the rising costs of raw materials, transportation, and labor during this unique period. The consensus in many sectors is: How long can we sustain this unparalleled growth before the shortages in the supply chain impact the Construction Industry as a whole?
Mike Green, Western Canadian Sales Manager, Leland Industries
Mid-year Construction Survey Results
Shield Wall Media recently closed its mid-year Construction Business Climate Survey. Despite all the doom and gloom we hear from news outlets, the results are surprisingly good.
We divided respondents into three categories: Building Contractors, Roofing Contractors, and Building Material Dealers or Manufacturers.
We believe you’ll find the results to be of interest.