The COVID-19 pandemic has undoubtedly shaken the world, and it has created lasting impacts that have affected a wide range of industries. The construction and heavy machinery industry is no exception.
Although we are now in the process of slowly returning to a state of normalcy, those impacts have left lasting impressions on the industry. Informed consumers should be aware of the ways in which the COVID-19 pandemic has shaped a new reality for the construction and heavy machinery industry, and take those changes into account in order to plan smooth and successful projects moving forward.
Account for Higher Lead Times
The pandemic has resulted in significant supply chain disruptions, resulting in notably longer lead times for consumers. As the economy continues to expand, manufacturers continue to struggle against issues like workforce shortages and limited supplies, and monumental order backlogs thanks to the COVID-19 pandemic and associated restrictions.
Many of our manufacturers are sold out well into 2022, with some products extending into even 2023. In fact, manufacturers are now reporting the longest supplier lead times since 1987 – while this shouldn’t discourage you or deter you from pursuing your project at this time, it is important to be aware of this so that you can create a realistic timeline for your project and avoid delays in your schedule.
Expect an Increase in the Cost of Materials
The past year or so has seen decreases in supply, as well as increases in demand, for commodities and materials that are often crucial in heavy equipment projects. The lumber and steel markets specifically have undergone these changes in supply and demand, and as a result, the costs of these materials can be much higher than typical pre-pandemic prices.
These fluctuations in supply and demand have made it more difficult for consumers to procure materials for their work, and by extension, these commodities have raised in price. The future of the market is uncertain and there is an air of unpredictability, but those who are planning for heavy equipment projects in a post-pandemic world should be prepared to face higher materials costs than in a pre-COVID market.
Consider a New Approach to Budgeting
While some companies and municipalities were able to remain relatively consistent with their budget year-over-year prior to the pandemic, that scenario is no longer a likely reality. Many organizations have found themselves needing to get creative with their budgets to navigate the post-pandemic market and accurately account for the impacts of the pandemic on their industry.
Cost increases, surcharges, and component delays should all be taken into consideration when building a budget, not to mention the need to navigate around regional re-opening plans and the related restrictions. Budgeting is possible and projects can very well be successful, but don’t expect to easily succeed with your pre-pandemic approach – the world has undergone a massive shift, and like it or not, we have to adapt!
Plan Ahead for Heavy Equipment Machinery
Now is the time to start talking about the heavy equipment machinery needed for your upcoming and future projects. Not to worry – Amaco is here to help navigate you toward the best machinery, whether you prefer to buy or to rent. We will work with you to adhere to both your budget and your schedule, helping to simplify the process so that machinery is just one less thing you have to worry about as you plan your project amidst this newfound reality.
Contact us now to discuss your upcoming projects, help you budget, and to create a plan for your upcoming heavy equipment needs!
Amaco is Ontario’s heavy equipment specialist and has helped municipalities, contractors, and owner-operators across the province find the right machine solutions for them. Contact us today to discuss your needs!
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