Contractors should plan ahead to overcome labor, equipment, and supply challenges
Patrick Cleary, Senior Vice President of Cement Sales-LafargeHolcim said, “This level of investment in infrastructure, especially highway infrastructure, has been a longtime coming. State agencies that have had the pressure of funding expiring every year now have longer-term funding that can be used to implement strategic improvement plans.”
Click to go to page 13 in ACPA Flip Book Q1:
https://www.associationpublications.com/flipbook/acpa/2022/Q1/10/index.html
Bob Leonard, Sales Manager, United States and Canada-GOMACO said, “It is exciting to see the money that will go to individual states for transportation projects. We don’t know exactly how the funds will be distributed and when, but the amounts designated for each state have been outlined.” [Please see How Much Will Your State Receive?, p. 13 in the ACPA Flip Book for sources of information on dollar amounts: Click on image above or “ACPA Flip Book” link above to go to page.]
“For Arkansas, the IIJA means a 30% increase in funding for transportation projects, and voters in our state approved continuing a half-cent THE SIGNING OF THE INFRASTRUCTURE INVESTMENT AND JOBS ACT in November 2021 represents a significant opportunity for the pavement construction industry. The $1.2 trillion bill contains an estimated $550 billion in new spending above baseline levels. This spending touches a broad swath of physical infrastructure, from transportation elements like highways, bridges, and public transit to fundamental systems like water, energy, and broadband. sales tax for road projects, so we are expecting a significant increase in work. While projects that add new capacity are being discouraged, there are times that an additional lane improves traffic flow, which reduces pol lution and improves safety, especially in urban areas or roads with heavy truck traffic,” said Don Weaver, Vice President-Weaver-Bailey Contractors.
Greg Dean, Executive Director of the ACPA-SE Chapter said, “Concrete is positioned well for the construction that agencies will plan with IIJA funding as well as other discretionary funding programs over the next several years. Building for resilience is important to agencies as the need for our infrastructure to withstand weather events increases. We have a strong story to tell about the benefits of concrete as we discuss pavement design options with our agency partners.”
He said that communicating the benefits of concrete pavement with designers, engineers, consultants, and others involved in state and local agency pavement projects is one step members of the industry should be doing now. Dean said, “We don’t want these funds used to build projects that will need perpetual maintenance, because the public is expecting to see value from these investments. Designing for resilience and long life now will create not only sustain able transportation infrastructure but also earn public trust,” he said. He suggested that when talking with local agency representatives, share information learned with ACPA local chapter representatives.
Dean added, “We want to be able to support members as they and local agencies look for the best approach to long-lasting infrastructure.”
While requests for bids related to IIJA funds will not show up immediately as agencies review their strategic plans and gain approval from FHWA, projects supported with other funding will begin in the second half of 2022. “I expect to see bids associated with increased funding begin appearing in third quarter 2022. Then, we should see a tangible increase in volume in 2023 through 2025,” said Cleary
Extra Volume May Exacerbate Current Challenges
As pavement contractors plan for the expected influx of work, there will be some challenges that are not new but will be more pronounced.
Leonard said, “Once the projects related to IIJA funding are let, which will be on top of previously planned projects for bid, contractors may find their schedules filled. The biggest question contractors will be asking is, ‘Can I find the labor?’ “
“Everyone I talk with comments on how hard it is to find skilled labor,” said Weaver. While it is not a new problem for the industry, the combination of an aging workforce, a number of people who left the industry during the pandemic years, and a need for more employees over the next few years have made the issue more important than ever. An Arkansas initiative, Be Pro Be Proud—led by the Associated Industries of Arkansas is spearheading the movement to bring a new generation of pride, progress, and professionalism to Arkansas’ skilled workforce. “Be Pro Be Proud is an example of how we can go into the community to teach young people, high school counselors, job seekers, and others how skilled trades careers are important and are a good choice for many people,” said Weaver.
Weaver added, “We are also dealing with some un knowns with materials.” He described a situation for which his company needed 300 feet of pipe for a project but could only find 120 feet in his state. “As contractors begin jobs that require a significant supply of material, they may want to work with state or local agencies to build time into the schedule as well as space on the job site, to procure and store critical material before the job begins.”
Equipment is also another area that contractors must plan ahead. “Equipment manufacturers are doing their best to compensate for shortages. Steel has not been a problem, so fabrication has continued, but other components that we rely on are not always available on a steady basis. GOMACO has never been a just-in time manufacturer which has helped us when lead times for components get extended beyond normal,” said Leonard.
Weaver added, “You can expect to wait six or seven months for some new pieces of equipment. The good news is that we know there will be more work over the next five years, which allows us to plan more, recruit employees who know they’ll be working steadily, and order equipment ahead of time. Throughout 2022, bidding will be more important than ever.”
“Contractors should not be overly optimistic about their ability to get people, equipment, and materials for a job, and they should plan for contingencies. As an industry, we’re comfortable with the bidding process, but we also need to be realistic about challenges we face this year,” he said.
For this article By Sheryl S. Jackson titled “Infrastructure Funding Creates New Opportunities for Industry”, please go to: www.associationpublications.com/flipbook/acpa/2022/Q1/11/index.html