The construction industry is booming in Florida, but it is also presenting many challenges for construction companies trying to navigate Florida’s construction waters. Many of these challenges have been around for a while, so it’s important to formulate a plan to mitigate these issues. See recommendations for dealing with the challenges of the Florida construction industry from a large construction firm, Skanska USA.
Facing Challenges
The Florida construction industry is experiencing tremendous growth, especially in the commercial sector where hospitals, schools, office buildings, and multifamily housing are needed to handle The Sunshine State’s ever-increasing population. Yet, there are numerous challenges the industry is facing as well. Navigating these challenges can be aided with the following tips.
Costs of Materials. Material prices have been in flux since the pandemic and even earlier, and rising fuel costs have only exacerbated the issue. A good recommendation to keep fluctuating material costs from derailing a project is to be upfront and transparent with customers about rising material costs. Keep in contact with clients—on a daily basis if needed—concerning market conditions so decisions such as modifications, delays, or pivoting projects can be made as quickly as possible.
Supply Chain Issues. Issues with supply chains can go hand in hand with rising material costs. When a material is in short supply due to restrictions, manufacturing shut-downs, slow production, shipping delays, or other factors, the demand and price for the material go up. In addition to staying in contact with clients concerning these issues, developing a supply chain group can help to reduce problems with material delays. Such groups work to mitigate the risk associated with supply issues by developing direct relationships with large equipment and material manufacturers and collecting real data on material and equipment lead times.
Some construction companies are even developing storage areas for materials and equipment that could be in short supply in the future.
Skilled Worker Shortages. Dealing with a shortage of skilled workers is nothing new for those in the Florida construction industry, but the pandemic and the continued growth of the industry have exacerbated the existing shortages. One recommendation for dealing with skilled worker shortages is to maintain good relationships with subcontractors. Another recommendation is to ensure your company is instituting policies that truly foster inclusion and diversity to make your labor pool as large as possible. There are many benefits to having a company-wide focus on inclusion and diversity beyond just having enough employees, so it’s a win-win for all.
Tucker Paving has over 25 years of experience in the asphalt and concrete paving industry, and we are no stranger to the challenges of the industry. Contact us online, or call us at (863) 299-2262 for assistance with your next asphalt paving project.
