Analysts say data indicates the construction industry will continue to struggle heading into 2022, in large part because filling positions with qualified workers will remain a challenge.
However, economists say public infrastructure will remain robust even though the private sector will continue to lag behind.
Kermit Baker, Chief Economist at The American Institute of Architects (AIA) says the rising price of goods and services is a key contributor to the private sector's woes.
“Inflation has been steadily increasing, and we are at a place we haven’t see in decades,” he said. “Inflation is pushing up the cost of construction caused by supply chain disruptions.”
Supply chain disruptions has left millions of machine owners in limbo as they wait longer than usual for parts.
Baker says the backup in product delivery is actually a good sign.
“That suggests a very strong rebound in construction activity as we move forward. This is reinforced by inquiries, and we are seeing backlogs at their highest in 10-12 years.”
Some working in the industry aren't so sure that's the case.
"A big problem is freight carriers are saying they are losing shipments. The problem I think is that these carriers are understaffed and overwhelmed," says Laura Donnelly, Customer Service Assistant Manager at ConEquip Parts.
Industry leaders say there are plenty of projects, but the delay in shipments and the lack of qualified workers continues to hold the economy back.
Baker said there are many reasons it’s difficult to find labor. “There is a mismatch between where the workers live now and where the jobs are,” he said. “Some are nervous about returning to work. Some are rethinking their career path, and there have been a surge of retirements.”
ConEquip Parts does everything it can to ease the strain on those working in the construction industry. If you need parts, give ConEquip a call today.
