Supply Chain Concerns In Modular Industry

Welcome back to a quick edition of the Modular Market Update. Today we are throwing out some of the growing concerns that are happening in the modular space in regards to supply chain.

We all know that Modular Construction is truly becoming the present and the future of all construction around the world. It also would be more than fair to say that modular building cuts out a lot of the complications on-site builders have faced with supply chain issues in the past. With that being said, it would be untrue to say that our recent history with COVID and other worldly events taking place that this topic doesn't weigh on our mind from time to time.

The topic I wanted to dive into and create a conversation around today is the Freight and Logistics piece of the supply chain. Getting your homes from the facility to its resting place is an art and something that has to have a heavy focus on when operating in this space. As Stream Modular puts in their article "Supply Chain Challenges for Modular Construction Logistics and Oversized Freight", two things that stuck out to me was damage to your homes in transit and driver capacity shrinking for the logistics companies. It always is a possibility that issues come up with your property being put on the back of a truck and with reported 75,000+ drivers being barred from moving material the skilled labor gap is steadily declining.

This topic brings in the ultimate fun game for an insurance guy to play which revolves around care, custody, and control. What do your contracts state about these events? Whose "property" is it? Who's at fault for damaging your product? All are great questions and all have an answer. Each are situational and ultimately fall to the word of law we sign with our name on the dotted line daily.

My question I propose to all my modular manufacturers and builders is what are you doing to ensure the logistics piece of your business is taken care of and what ways are you mitigating your risk?

If you are having any questions or concerns about this article please reach out to me and have a conversation on this topic. There are ways to mitigate the risk and have a clear understanding of how these situations play out as long as you have the discussions prior to the unfortunate event that something happens so you are not get blindsided. I wish you all the best and can't wait to expand on this next week.