Construction Equipment Suppliers Continue to Face Supply Shortages

Returning to ‘’normal’’ after two years of a global pandemic isn’t easy. The construction industry has been facing widely reported supply shortages, though equipment is almost constantly in demand.

However, supply disruptions have begun to ease and suppliers are working through these issues, though there are many suppliers that maintain international shipping. According to the predictions of the managing director of Rouse Sales, Doug Rusch, now that new machines are starting to land, 2022 seems to be promising for the successful handling of the industry’s supply-chain issues.

Although Rusch and the Rouse Sales’ panel are optimistic about current developments, they know from long experience that such challenges don’t typically get solved right away; they demand time. Various other details have to be worked out first, such as the logistic aspects. 

Research Regarding Equipment Manufacturers

Some research has been performed with regard to construction equipment manufacturers as well. According to a recent survey by the Association of Equipment Manufacturers’ (AEM), more than 95% of construction equipment manufacturers have cited supply chain issues of late.

At the same time, 44% of respondents felt that the problems were beginning to change for the better, which signals that demand was also starting to return to normal and the supply-chain issues were improving substantially.

In addition to the easing of supply-chain conditions, another issue many manufacturers have been facing is shipments across borders. As mentioned, many suppliers provide international shipping for their customers; for instance, Maxim Truck & Trailer, a supply dealer, performs shipping in the U.S., especially now that activity has begun to improve and demand is increasing.

It’s also crucial for shipping costs to be maintained at a reasonable level, so Maxim makes certain to do just that. On top of this, they have top-notch products and services.

What is AEM Doing to Help Customers?

AEM hosted a State of the Industry panel, during which senior VP Bob Crain stated: “We’ve all gotten very, very creative in the past couple years and all of us have successfully adapted our resources, processes, actions, many things to help mitigate the significant impact to our customers and our dealers.” He admitted there are likely to be certain continuing challenges in the coming months, but industry observers remain optimistic that in 2022, most areas will improve.

Rod Schrader, AEM board vice chair, added that supply issues have been hampering the industry for at least 18 months, but there have been encouraging signs of stabilization in the supply chain. Schrader added that members have used different transportation and port modes they hadn’t employed in the past, so they could reduce the risk in manufacturing.

“I believe it is going to get better in 2022. I don’t believe it will be back to normal in 2022,” he acknowledged.

“But our teams in our individual companies are expending a lot of energy and effort to modify, adapt and to minimize risk not only for today, but also in the future so that we are more flexible and adaptable to these things happening again.”

For the time being, we can only hope that the availability of resources and equipment doesn’t disrupt the supply chain to the same extent as in the past two years again.

 

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