Planning and Preparing

Recent supply chain disruptions continue to impact

various industries, including construction. Although

the previous International Longshoremen’s

Association (ILA) strike and port shutdowns

highlighted the vulnerabilities in material supply

chains, current challenges stem from other factors,

such as fluctuating global economic conditions,

labor disputes and natural disasters. What does this

mean for the construction industry?

Contractors should anticipate potential delays in

imported materials and equipment and prepare

for price increases for some supplies. Proactive

steps include:

• Coordinating with subcontractors and

vendors to accelerate shipments or adjust

delivery schedules.

• Increasing inventory of critical materials

when possible.

• Exploring alternative suppliers or sourcing

options, including domestic vendors.

Additionally, keeping detailed records of material

price changes and assessing existing contracts for

clauses addressing price escalation can protect your

business during negotiations or claims. Planning

and preparation are key to minimizing disruptions

and ensuring projects stay on track, especially as we

navigate an era of global unpredictability.

In other news, being in the construction industry

brings additional challenges such as cybersecurity

attacks. Attackers are targeting construction

companies by way of phishing emails, data

theft and ransomware. Such attacks can lead

to substantial disruption and downtime and

ultimately lead to financial loss. It is imperative

to protect your company from these threats.

Implementing a cybersecurity program with

regular employee training, access controls and

regular updates is vital in preventing cybersecurity

attacks. Your organization will be on its way to

a great construction cyber culture through the

proper policies and procedures, a team of trusted

advisors, selecting the right plan, and even through

cybersecurity insurance. Stay cyber-safe out there.

I wish you all a healthy and happy winter and

holiday season.

Very truly yours,

Michael Weber, President