Delays are expected not just on timber but also on other construction materials. In response to COVID-19 by governments across the planet, shipping companies throttled around 10% of the global fleet. This has affected the volume of the shipment and the price. In today’s day and age, businesses can’t afford to be without their construction materials such as aluminum for too long, as it affects their bottom line in a big way. If you are in charge of making sure your company continues to operate smoothly despite delays, here are some tips on how to keep up with your supply chain.
This has led to a decrease in the volume of timber shipments and an increase in prices.
In response to these delays, many construction companies are turning to alternative materials such as bricks, copper, steel, and iron ore.As a result, there has been an increase in demand for those products and their prices have increased as well. It will take time for the supply chain to return to normal levels, but with new regulations designed to reduce air travel, this will likely happen soon.
These resources are used for home building. Therefore, when there is an issue with either the pricing or production of these resources it can affect the entire industry. For example, during China’s economic downturn their demand for commodities declined so much that it caused prices to decrease and smaller companies went bankrupt because their contracts were at risk of being canceled.
The COVID-19 pandemic has caused delays on aluminium products is also expected as a result of increased demand for the metal due to COVID-19.
However, some companies such as Hilltop Industries are expecting no material shortages or price increases related to the virus and other factors affecting timber production in respect to price increases of aluminum.
This has affected the volume of the shipment and the price. As a result, contractors will have to factor in these delays when bidding for new projects. As they do so, they may be unable to meet the deadlines which might lead to them losing out on the contract. There is also concern that there could be a shortage of building supplies which would push up prices further. Construction companies should take note of this as they bid on contracts to ensure that they can afford the potential delay costs.
Other problems include misaligned incentives in the cargo insurance market which may leave some suppliers with insufficient protection against delays and under pricing risks.
