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Utilizing Technology in Construction to Overcome Supply Chain Challenges

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Utilizing Technology in Construction to Overcome Supply Chain Challenges

by Richie
04/29/2021
in Risk Mitigation, Security & Risk, Supply Chain

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The construction industry is currently navigating through a tough period marked by escalating material costs and persistent supply chain difficulties. These challenges are hindering the sector’s anticipated recovery post-pandemic. Ken Simonson, the Chief Economist for the Associated General Contractors of America, predicts that significant recovery in the nonresidential construction market is unlikely before 2022, attributing this delay to rising material prices, supply chain bottlenecks, and ownership hesitancy in this uncertain climate.

Recent reports from the first quarter of 2021 indicate that supply chain issues are profoundly impacting civil contractors, with many experiencing material procurement difficulties. A Dodge Data & Analytics survey revealed that nearly three-quarters of civil contractors faced serious material acquisition challenges, and more than three-quarters are concerned about escalating costs over the next six months. These findings cast doubt on the sector’s ability to recover swiftly.

To counter these issues, contractors are increasingly turning to technology. One example is Matt Gramblicka, Vice President of Information Technology and Enterprise Applications at Graham Construction & Engineering in Canada. He is focusing on utilizing technology, such as SAP’s ETM.next tracking solution, to ensure efficient equipment and material management. This approach aims to have the necessary resources where they are most needed and to maintain visibility of material supply chains. Another example of technological utilization is seen in Oracle’s new suite of artificial intelligence and analytics applications, Oracle Construction Intelligence Cloud Service. This tool uses historical data to predict future outcomes, helping in decision-making processes related to subcontractor selection and supplier relationships.

Chicago-based Pepper Construction is addressing delays in acquiring materials like steel bar roof joists and precast wall panels by re-sequencing construction phases and using low-tech RFID tracking to monitor supply locations. Jennifer Suerth, Vice President of Technical Services at Pepper, notes the importance of this tracking in managing schedules effectively.

Chris Bailey, Senior Vice President of Integrated Solutions at XL Construction in the San Francisco Bay Area, mentions the ability to track materials in real-time, even when they are in transit on ships, using RFID trackers and QR codes. This level of visibility is increasingly critical in managing the complexities of modern construction projects.

While the construction industry faces significant challenges, the adoption of technology is providing valuable solutions. From tracking supplies in real time to leveraging historical data for better planning, technology is playing a pivotal role in helping the industry navigate through these turbulent times and prepare for a more robust future.

Breaking supply chain news is just a click away at The Supply Chain Report. Enhance your knowledge of international trade at ADAMftd.com with free tools.

#ConstructionChallenges #SupplyChainIssues #MaterialCosts #KenSimonson #AGCA #DodgeDataAnalytics #GrahamConstruction #SAPETMnext #OracleConstructionIntelligence #PepperConstruction #RFIDTracking #XLConstruction #TechInConstruction #ConstructionRecovery #AIInConstruction #ConstructionInnovation #SmartConstructionSolutions #ConstructionVisibility

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The Supply Chain Report is your essential daily news website, serving as a trusted source for comprehensive coverage of the complex and ever-evolving global supply chain dynamics. Our expert team delves into the intricacies of international trade, manufacturing, logistics, importing, exporting, and supply chain management; providing in-depth analysis and up-to-date news on the latest trends, disruptions, and technological advancements affecting industries worldwide. From detailed reports on international trade through to insights into procurement strategies and inventory management, we offer valuable content that helps professionals stay informed and make knowledgeable decisions in a fast-paced market.

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