Supply chain risk in construction – moving forward in an uncertain world

The global pandemic had many outcomes, but one was recognizing the importance of supply chains. With disruptions in manufacture, shipping, and installation, materials became increasingly scarce and expensive. Our super-optimized world of just-in-time thinking led to an unforeseen consequence – what if our materials aren’t available in time?

Unfortunately, this risk isn’t going away anytime soon. The Key Bridge collision and subsequent blocking of the Baltimore Harbor disrupted trans-Atlantic trade. The low water levels in the Panama Canal have led to lines of cargo vessels waiting their turn (or trying to go around the tip of South America). These events pale compared to the uncertainty around global security issues, from Taiwan to Ukraine to the Middle East.

Construction firms need to address this risk through careful planning and emerging tools that adapt successful practices from manufacturing and retail. Supply chain risk doesn’t only affect construction management and the field. Some material supply chain considerations at different phases of the construction life cycle are below.

Over the next few weeks, I will discuss the supply chain risks at each of these phases of construction and, hopefully, engage in discussions on ways forward.