Supply chain disruptions are every where we look. From groceries to building materials, the shortages caused by these disruptions are impacting nearly every type of industry, and architecture is no exception.
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Limited supply of products and materials have extended construction periods and left architects, designers, and contractors sometimes scrambling to find an appropriate substitution, without blowing a client’s budget.
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CNH Architects has been dealing with a variety of these disruptions and set backs since early 2021, according to CNH Principals Wayne Hilbert, Quinn Hutson, and Brooke Jacobson. The setbacks started to be felt in the summer of 2021. From materials being stuck on shipping containers on stranded ships to staffing issues and weather, the reasons behind the shortages are numerous.
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An example of this is carpet adhesive, which was in short supply for months because of the February 2021 ice storms that hit Texas. The large supplier couldn’t handle the unseasonable weather and lost much of its product, causing the backups.
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Instances like this leave sales representatives scrambling to find other options for their architect and contractor clients. When a popular tile was stuck in a shipping container with no clear arrival date, reps had to find it elsewhere, preferably in the United States where the delivery time might be shorter. Still, three week lead times have turned into eight week lead times.
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Materials
A material shortage that continues to impact CNH projects is garage doors and panels, a delay that is being attributed to COVID-19, just as many other supply chain issues. As stated on a Global Newswire article,
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“Due to Covid-19, we’ve seen many shutdowns and operations suspended,” says Thomas Wang, the CEO of Garage Door Service & Repair Inc. “We’ve heard of people laid off and many quarantined. Health comes before anything else and so, we all took measures. The entire supply chain is shaking. There are not enough garage door parts. If we cannot deliver, customers cannot get.”
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Roofing insulation is another semi-long standing issue for CNH and their contractors. To both assist with the problem and increase it, many contractors are stocking on up items like this and storing it until the needs arises.
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“It’s really difficult to get, Hilbert said. “Some contractors will stockpile if they have the space, but this also contributes to the shortages.”
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Bar joists, pre-cast wall panels, light fixtures, and materials with foam insulation are other materials the CNH principals list as having major impact on projects as of late.
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“Everyday it’s something different,” Hutson said.
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He reported that they work with clients and contractors to order materials as soon as they possibly can. Contractors can’t always guarantee prices either, adding another incentive to order as soon as possible. In one instance, Hutson said they ordered light fixtures for a project nearly a year ago and still haven’t received them.
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Once construction starts and a shortage hits, it’s a different kind of scramble to find an alternative. One current project with a tight timeline switched to a double tee precast roof to keep things on track. The multi-facility client adheres to a specific look, with specific materials, but made the exception to keep the project moving.
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At Burnsville Fire Station No. 1, some of the apparatus bay doors were switched to a four-fold door well into construction after a significant delay for the original door postponed move-in for months.
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Clients and Cost
The supply and demand issues, of course, increase the price of most products. Steel bar joists have been seen as much as 5 times their typical cost, Hilbert explained. All three CNH principals expect the price increases to continue into 2023.
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CNH has experienced projects put on hold indefinitely due to the uncertainty around materials and cost, but they’re also very fortunate to have many public clients, such as city municipalities, where the money is accounted for.
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The cost increase is sometimes off put by the record low interest rates as well, and the principals say thankfully, most clients understand that everything is just going to take longer than it did a few years ago.
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Hilbert, Jacobson, and Hutson said that it takes a lot of communication from the get-go with clients to avoid issues around materials and cost. The issue is discussed early on in the design phase of each project, bids are held earlier than usual, and some materials are avoided altogether.
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“Staying on top of everything and communicating are key to keep things moving,” Jacobson said.
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Still, projects go over budget and often times, construction contingency funds are used up. In one case, Hilbert explained that a supplier went out of business during construction and couldn’t be reached. The team had to find someone else and quickly. “It was a significant project cost,” he said.
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As time goes on dealing with these issues, things have become more manageable and working to minimize unforeseen costs and issues has become more commonplace in planning.
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“It’s not over, but things have to catch at some point, things have to slow down,” Hilbert said.
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“We have to deal with it, eventually it will self-correct,” Jacobson agreed.