In late 2021 the Construction Leadership Council predicted that the chain issues and high material prices suffered by the construction industry would likely stabilise by 2022. But no one could have predicted the recent surge in energy prices or the invasion of Ukraine by Russia that has stunted any positive progress that has been made in its tracks.
In the wake of the world’s biggest manufacturer of mobile cranes, Tanado, suspending production at two of their factories due to supply chain shortages, we go through what shortages are happening, why they are happening, and what you can do about them.
In November 2021, we found out that over two-thirds of the On The Tools community were suffering from delays due to material shortages in a social survey. We decided to find out where the issue came from, and what was being done about it (read the article here).
Many at the time were still reeling from the aftermath of the Global Pandemic and pointing the finger at materials delivery services. But now, the origins of the renewed issues in 2022 can be found in energy prices, price inflation, and the Ukrainian conflict, says the Construction Leadership Council. ONS asserts that Brexit and Coronavirus are also continuing to affect chain shortages.
In April 2022, Tanado announced it was suspending production at factories in Japan and Germany. Construction Index cites the ongoing semiconductor shortage, Russia’s invasion of Ukraine, and coronavirus lockdowns in China as some of the reasons for the closure. Tanado said that they’re considering taking further actions to mitigate more anticipated supply chain disruptions.
What to do about supply chain shortages
While the bulk of the supply chain shortage issue lies in the hands of the government, there are some measures that you can take to make your life easier in the wake of these difficult circumstances.
The most important thing to remember is that staying aware and on top of everything that’s going on will help you plan for the future. Planning ahead is easier said than done, but is vital to keep on top of the shortages and price rises.
UK Construction Online explains how construction consultants can nurture the supply chain by sourcing locally, engaging in long-lasting partnerships, and more, here.
Let us know whether you have been affected by supply chain issues here.