2024 to bring easing supply chain disruptions and strengthened supplier relations amid geopolitical vigilance in construction
Market Insight 19 December 2023 19 December 2023
Predictions 2024 - Geopolitical Risk
Reduction in construction project delays expected as industry recovers post-pandemic.
Heading into 2024, further easing of supply chain disruptions in the North American construction industry is anticipated, building on the recovery momentum from the pandemic's peak. This positive shift is expected to reduce delays in construction projects, enhancing project owners' and contractors' awareness of available resources.
The pandemic has been a significant catalyst for change, especially in how the construction industry interacts with suppliers. Enhanced communication technologies are increasingly being adopted to streamline material ordering workflows. This shift towards digital solutions is not just a reaction to past challenges; it's a proactive measure ensuring more agile and informed material management that is expected to continue in 2024. The industry has learned that assumptions about material availability are risky, and this newfound agility is a key benefit moving forward.
However, the narrative of supply chain disruptions is complex and warrants a broader perspective. The pandemic's impact has perhaps overly focused our attention on conventional factors like labor shortages in manufacturing and transportation, influencing material availability. In 2024, it will be crucial to recognize the diverse and multifaceted nature of these disruptions.
Geopolitical factors are increasingly influencing the supply chain. The evolving trade relationships between the US, Canada, and China, for instance, could introduce new challenges, as seen in the apprehension within the lumber industry. This evolving landscape requires an approach of cautious optimism.
While the outlook is positive for the industry as it continues its post-pandemic recovery, it must remain vigilant to a shifting geopolitical landscape and the resultant supply chain disruptions. A balanced perspective will be critical in navigating the upcoming year's challenges and opportunities, solidifying the industry's position as resilient and forward-thinking.