Hard hats with construction cranes in background illustrate current procurement and labor pool situation.

Looking to Build Soon? Consider these logistics.

Commercial construction procurement and labor pool updates

Chart indicates that procurement and labor pool issues are among top five concerns for builders in 2024.

Long before your commercial construction project begins, it’s essential to consider the logistics that could impact your project’s potential. In recent years, key considerations include material and equipment procurement and the vendor labor pool — both of which, when disregarded, can impact your project’s schedule and budget. As the premiere design and build experts in the 7 Rivers Region and beyond, we know this information is power: it can not only help you avoid cost overruns and project delays but also ensure a smooth commercial build, from start to ROI.

The complexities of construction can pose a challenge

Commercial construction is like figure skating. When done well, it looks easy. But the truth is it takes industry-insider intellect and intense collaboration and study to ensure a project goes smoothly.

The most complex logistics in recent years include procuring available vendor labor and materials and equipment for your commercial build. As we’ve all seen in the news, a tight labor market is impacting many industries, including construction. And global supply chains have been tested time and again by high demand, labor shortages as well as transportation logistics. It’s all intertwined, making having an innovative design-build team on your side more important than ever.

Let’s look more closely at what we’re seeing on the horizon for labor pool and supply procurement considerations in 2024 and 2025.

Construction costs remain persistent

Supply cost pressures persist in the construction industry, and that’s a concern for many developers. Some approach the challenge by delaying the construction of their next commercial build, which comes with its own challenges and opportunity costs. In part, these costs can be attributed to the influence of a tight labor market, price volatility among commodities, and general inflation. With signs that inflation is moderating, and with commodity prices showing indications of slowing in their climb, optimism is returning among developers. We’re also seeing recovery of the supply chain for most materials and products since the pandemic, though conflicts on the world stage and disruptions in shipping remain a concern. Being nimble and innovative in procurement solutions is an essential tool for any commercial construction general contractor, and one which our team is proud to embody to counteract supply chain delays.

Labor shortfalls continue

Labor shortfalls are part of the new normal in the commercial construction landscape, and that holds true in the region we serve, which includes La Crosse, Onalaska, Rochester, and beyond. Subcontractors are enduring this challenge and continuing to deliver, but the ongoing nature of this issue underscores the importance of trusted partners in the commercial building space. Industry estimates indicate a need for 342,000 new workers (on top of regular hiring) this year. By working with a design-build firm with a sterling reputation, you can rest assured that we’ve forged partnerships with dependable, skilled professionals who can get the job done right.

Overcoming construction challenges starts with design and build

To overcome these issues, starting your commercial build process early is crucial. Through our comprehensive predevelopment and preconstruction services combined with our design-build model, you can be confident you are locking in on the best pricing available while procuring supplies on a timeline that eliminates the risk of costly delays and change orders. Moreover, getting a jump on your project allows you to adjust for the unexpected without impacting the trajectory of your project.

Overcoming construction challenges starts with the right design and build team. At DBS Group, we’re proud to serve commercial construction clients in Wisconsin and Minnesota, and we’re dedicated partners in your effort to overcome construction industry challenges. Contact us to discuss how we can support your vision for your next commercial build. We can help you navigate today’s common concerns and whatever challenges may present themselves in the future.