How Transportation is Factoring into Material Shortages

By Meta Team. 

Meta Team examines how long lead times are factoring into the material shortages.  

The material shortages felt by the roofing industry are indicative of multiple factors. That is why Meta Team has done the research, looking into all of the reasons why these shortages are happening. In this article, Meta Team takes a closer look at transportation issues as a possible explanation for the shortage.  

As contractors are well aware, 2021 was characterized by long lead times for everything. Port backlogs, truck driver shortages, global deficit in shipping containers and more have all contributed to a transportation crisis on top of material shortages.  

Goldman Sachs estimated that $24B worth of goods are parked outside of California ports along. Ocean shipped goods have been parked at ports in the US at an alarming rate. The current administration has focused on keeping one port open for 24 hours to begin to relieve the issue. That does not address moving the containers offloaded at ports.  

In November of 2021, 80,000 containers were sitting at the port of Savannah and another twenty-five ships were parked waiting for offload. These containers are ultimately moved by truck. This dovetails into the truck driver shortage. 

According to the American Trucking Association, “ATA estimates that over the next decade, the industry will have to recruit nearly 1,000,000 new drivers into the industry to replace retiring drivers, drivers that leave voluntarily (e.g., lifestyle) or involuntarily (e.g., driving records or failed drug test), as well as additional drivers needed for industry growth. These trends do not account for the impact of potential laws that may either alter the industry dynamics positively (e.g., lower the minimum age to drive across state lines) or negatively (e.g., regulatory mandates that push drivers to exit the industry or be less efficient).” 

The transportation crisis is further exacerbated by a lack of shipping containers. According to Bill Bellico of Sika, “There are not enough intermodal containers available to service the volume of goods to be shipped. Multiple factors have driven this situation including increased demand of consumer products during Covid-19, out of balance trade routes and inability of manufacturers to produce new units.” 

These factors not only have caused great delays but also increased costs. According to Construction Dive, the percent price change for non-residential construction services jumped the most in the area of truck and transportation of freight. 

For more insight into reasons why we are experiencing material shortages, check out Meta Team's website! 

Original article source: Meta Team