INDUSTRY REPORT
“ Electrical equipment units remain in tight supply , particularly in the North American market , as a result of prolonged component shortages and high metal input costs ,” added David Smith , IHS Markit analyst for electrical machinery and equipment . “ One category in particular , transformers , is experiencing the worst of these effects , as manufacturers struggle to acquire grain-oriented electrical steel ( GOES ) tonnage . GOES steel is on allocation in the United States and is only made at one mill domestically , which has further tightened domestic transformer supply . These high input costs , coupled with shipping backlogs , will support price increases for electrical machinery through to the end of 2022 .”
The sub-index for current subcontractor labour costs came in at 74.5 in February , a decline from January ’ s index figure of 84.2 . According to survey responses , labour costs continued to rise in all regions of the United States and Canada .
The six-month headline expectations for future construction costs index dropped to 66.0 in February , though the index continues to signal respondents expect prices to continue increasing through the summer of 2022 . The six-month expectations index for materials and equipment came in lower at 56.2 , 2.8 index points below the previous month ’ s figure . The six-month expectations index for sub-contractor labour declined by 5.1 index points to 88.8 , with respondents expecting labour costs to increase robustly in all regions of the United States and Canada .
The materials reported for shortages referred mostly to electrical steel and electrical equipment components .
“ Steel pipe production is rising globally as high prices and strengthening demand incentivise mills to increase output . Despite the increases , production remains below optimal levels as mills struggle to find and hire workers and welded pipe producers face shortages of hot-rolled sheet and record-high prices ,” commented Amanda Eglington , Associate-
Other trends in the construction market include modular building , increased interest in 3D printing technology , sustainability innovations and robotics
Director , Pricing and Purchasing , IHS Markit , in October 2021 .
“ Seamless pipe mills have faced less of a constraint on the availability of raw materials and less cost pressure . Seamless mills are also leading the rebound in manufacturing activity , and , in many cases , are taking market share from welded pipe suppliers ,” she added .
Looking ahead
According to Allied Market Research , the prolonged lockdown has severely affected the supply and distribution of raw materials for the construction of buildings and commercial sites . However , the adoption of technology platforms and solutions to tackle the pandemic is expected to aid the construction and manufacturing industry post-pandemic .
Other trends in the construction market include modular building , increased interest in 3D printing technology , sustainability innovations and robotics .
The sustainable trend in construction shows no signs of slowing . Requests from construction clients often include sustainability specifications , especially if customers want to receive eco-friendly designations or tax credits .
There is also the potential for collaborative robots , or cobots , in construction . These mobile robots could help construction projects to stay on schedule and finish under budget , if deployed on timeconsuming or labour-intensive tasks .
Emerging trends which have a direct impact on the dynamics of the construction industry include increased demand for green construction to reduce the carbon footprint ; bridge lock-up device systems to enhance the life of structures ; building information systems for efficient building management and the use of fibre-reinforced polymer composites for the rehabilitation of aging structures , according to analyst Lucintel .
However , while advances in technology such as Building Information Modelling ( BIM ) and modular construction can help , efficiency improvements of the scale required will only be achieved if the industry evolves and develops leaner , more collaborative ways of working across the supply chain . n
24 | sheetmetalplus . com | ISMR May 2022