Continued construction industry growth strikes positivity for 2022 — will you be ready for the rush?
From continued positive earnings reports to bullish forecasts for the construction industry in 2022, the wave of demand for heavy construction equipment (and all of the services and businesses that support it) will continue well into 2022 and beyond. Dodge predicts that the industry as a whole will grow by six percent in 2022 — and the recent passing of a new infrastructure bill will only further bolster demand for equipment in the new year as those funds start being released and new projects are engaged.
What will temper expectations heading into the next few years? The industry might be doing a little looking over its shoulder thinking this is all too good to be true. Simultaneously, some forecasts anticipate that housing starts in 2022 and 2023 will be more modest in gains than they were in 2021 — and the residential market is often a leading indicator for the rest of the industry as a whole. Growth is still projected, but not at the same breakneck pace.
Three major restrictions on the industry that could really hold things back are the things we’ve been talking a lot about in 2021: Supply chain (both equipment and materials), labor and the risk of inflation. According to AIA, “As of the second quarter of this year, consumer prices are growing at a 4 percent pace compared to the prior year. Producer prices have accelerated even faster, increasing almost 6 percent in the second quarter.”
That supply chain issue will not be going away. Similarly, as contractors push to meet deadlines and the demands of their customers, the need for timely parts and service will be more important than ever.
The two most important factors when choosing who to work with, consistently, when heavy equipment owners are polled: Dealer/service responsiveness and parts availability. These are the two most critical factors affecting uptime when repair/service is needed. Our call to action for you? If you’re a dealer, now is the time to act and make sure that you have an excess of the most common parts in stock for your high-volume products. If you’re an equipment owner: stock up, and work with your local dealer/service provider to ensure the parts you need will be there when you need them.
Whether you’re a dealer service department or an equipment owner/fleet manager, SmartEquip Procurementhelps shorten the distance from Point A to Point B and help you get the resources you need in a timely and efficient manner.
SmartEquip Procurement provides:
- Technicians a single login multi-manufacturer platform for parts and service information
- Accurate repair and maintenance information across all locations.
- Exponential improvement in shop efficiency and technician wrench time
Get after it. And be ready. 2022 is going to be excellent.