Tag Archive for: construction market

How The Bridge Industry Can Beat Inflation

,

Over the past few years, inflation has increased the price of everyday essentials and almost everything used in the bridge and building sectors. The skyrocketing prices shocked many manufacturers, resulting in cold feet and desperate attempts to resuscitate deals.

This can be particularly challenging for bridge fabrication companies, as raw materials and labor costs can account for a significant portion of their expenses. However, there are strategies that a bridge fabricator can implement to fight against inflation and maintain its competitive edge.

What’s Fueling Inflation?

Inflation can significantly impact bridge construction and operations as the cost of steel, labor, and other inputs increase. However, other economic factors can drive prices up considerably.

Construction companies need to learn how to navigate the current economic climate. Understanding the underlying causes of inflation and developing strategies to mitigate its impact on a business is essential. Some of these factors include:

  • COVID-19-related shortages: The pandemic reduced global manufacturing and has kept workers away in numerous countries. This lowers production and leads to fewer items, higher demand, and higher prices.
  • Higher fuel costs: Like everything else, fuel costs are also increasing, leading to gas-powered operations costing much more to run efficiently.
  • Increased demand: Due to decades of underinvestment in infrastructure, new bridges, roads, and renovations are undoubtedly needed. The current infrastructure bill will finance this effort, and financing will compete for building resources, raising costs.

Overcoming Inflation

Despite support from the government, many construction firms are low on funds, leaving them with less support to fight against inflation and compete for supplies and equipment. However, there are plenty of ways a bridge fabricator can still compete in this troublesome market while remaining profitable and complying with contracts.

Create New Rules

Many construction firms abide by the same rules when inflation is high. This shouldn’t be the case. Instead, with higher inflation, construction companies need to create new regulations and procedures.

For example, companies can rethink inventory management when ordering supplies to save money and storage space. Also, before signing any contracts, firms need to evaluate whether or not it makes sense to purchase supplies immediately or to wait, as the costs may fluctuate in the future.

Eliminate Undercutting

Competitiveness within the bridge industry is real; sometimes companies offer lower prices than their competitors. However, doing so may not be wise in times of rising prices. This is because undercutting can cause a significant loss of profit and can ultimately put a firm out of business.

Keep Contracts Up to Date

When discussing contracts with a legal team, consider the possibility of including price provisions to combat inflation. This will keep customers accountable for any potential budget overruns that might arise throughout construction.

Treat Employees Right

Firms that take the initiative to transform their companies into attractive workplaces will benefit from not having to replace their workforce as much. Consider providing employees with innovative and relevant perks that won’t break the bank.

Also, ensuring a safe working environment will quell any concerns. By taking these steps, companies won’t have to replace employees and won’t have to spend money training new ones.

What’s Next for the Industry?

The past has made it clear that this is just a moment that’ll likely pass, and the market and supply chain will stabilize and rebound to what it was before the pandemic. However, challenges will remain, and there will still be a variety of difficulties to face.

So, it will be up to project owners and contractors to identify cost-saving alternatives that bridge the gap between bid prices and material costs. By implementing these measures, bridge builders can maintain profitability and stay ahead of the competition in a challenging economic environment.

Build With U.S. Bridge

At U.S. Bridge, we know the significance bridges have on the prosperity and growth of a nation. That’s why partnering with a reputable organization with cutting-edge technology and production capabilities is crucial.
Contact us today to start your next project, or check out our premier BridgeScope tool to get a head start on the process.

President Biden Signs 1.2 Trillion Bipartisan Infrastructure Bill

,

On August 10th the Senate passed a $1 trillion infrastructure bill intended to invest into America’s economy and roadways. The approval on the 2, 702-page bill came after months of negotiations and deficit concerns. This past Monday, President Biden signed the new bill into law.

The Infrastructure Bill

After passing congress in a 69-30 vote, the bipartisan $1 trillion infrastructure bill was later signed into law by President Joe Biden— providing one of the biggest investments in infrastructure in over a decade.

The bill is said to encompass physical structures such as roads, bridges, waterways, and airports. And it includes around $550 billion in new spending, as well as $450 billion in previously approved infrastructure investments.

The idea behind the bills’ spending allocations is to combine the urgent need to fix the country’s deteriorating infrastructure while also tackling long-term goals such as climate change. That’s not all, the hope is that a sequel of the bill will be proposed in later years.

Regardless, the Congressional Budget Office still fears that the $1.2 trillion infrastructure bill would increase federal budget deficits. This assessment, however, was rejected by negotiators who argue that the CBO did not adequately consider the revenue the bill would generate.

Estimated Benefits

Aside from greatly improving America’s infrastructure system, another major goal is to greatly boost the economy. The bill proposes around $110 billion to replace and repair roads, bridges, and highways, and $66 billion for passenger and freight rail. This marks the most significant investment into the country’s railways for almost half a century.

An additional $55 billion is intended to repair the U.S. water supply; as well as $65 billion to improve the country’s power grid. A small portion of the bill is devoted to rehabilitating waterways, improving airports, and expanding broadband Internet service.

These surges of construction projects are intended to ensure new jobs across the country and a steady rise in the construction industry.

In Senator Portman’s speech regarding the bill, he stated, “It will improve the lives of all Americans.” And continues with “People do expect here in America, [with] this great economy we have, we should also be able to lead the world in infrastructure. But we don’t.” The hope is that the infrastructure bill will provide the improvements necessary to revamp the country’s infrastructure.

Build with U.S. Bridge

U.S. Bridge is an industry leader and expert with projects and experience all around the world.

Visit our blogs for more information on the construction industry or our services. Get a quote from us for your next bridge project or learn more about our steel bridges. Together, we’ll build a better future for America’s infrastructure.

Careers in Construction Month

,

All October long, organizations such as NCCER and BYF raise awareness about the diverse career opportunities in the construction industry. This event is called Careers in Construction Month and it takes place every year to help organizations reach more talented applicants as well as teach the public about the benefits presented in the industry.

The Benefits of Working in Construction

Versatility

Another big advantage of working in this industry is the extensive range of trades available. Just one project alone requires individuals from various trades like engineers, architects, masons, and many more. With so many different crafts and trades options to choose from you’re sure to find something you’ll like.

Job Security

There’s been a shortage of skilled workers for years so the demand for individuals in construction careers is high and only rising. Although the shortage causes issues such as delaying projects or not having enough manpower, it does give more people the opportunity to apply in the field. Not to mention, it provides a sense of job security.

No Degree Necessary (Degrees are Optional??)

One of the biggest advantages is that, for the most part, no college degree is required. This opens the door for many people who either chose not to go to college or were unable to afford it. However, this does not apply to every career option in the industry. For example, although a mason may not require a degree, the position of architects and civil engineer does.

Some trades, however, do require formal training or certification from either a trade or technical school but for many, you’re able to apply and join as a laborer to gain experience. Of course, like in any other industry, the more training, experience, and credentials an applicant has, the better off they will be at obtaining a job.

A More Active Lifestyle

Unlike other occupations, chances are you won’t be sitting all day. Working in construction means that you get a more active lifestyle which is better for your health. That being said, the construction industry can be very physically demanding and could have some serious negative effects on your body. Ultimately, your daily routine will be determined by the career chosen.

The Potential for Growth

Your pay depends on various factors such as location, trade, and experience. But the great thing is that there’s always a potential for growth in salary and position.

Compared to other careers, it’s fairly easy to enter a trade without experience. For many traders, you can start as a laborer and learn the craft over a few years to progress in your skills and position.

Careers in the Construction Industry

Architect

Architects are the individuals who design new buildings and construction plans. Their blueprints and concept designs include the inner structure and outward appearance of projects. This position requires a Bachelor’s Degree, Master’s Degree, or Project Management Certification. In addition, skills utilized in this career are creativity, computers, detail-oriented, math, and teamwork.

Average salary per year – $87,500

Carpentry

Carpenters build and repair frameworks and structures with wood and other materials like wood, plastic, fiberglass, and drywall. They are often involved throughout the building process from basic layout to the finishing touches. In addition to building and maintaining structures, carpenters may also play a supervisory role for framework inspection.

This career is actually among the top 10 construction trade with the highest demand. To work in this trade, individuals typically need to go to technical school, an apprenticeship program, or a trade school. Skills required for carpenters are creativity, detail-oriented, math, and troubleshooting.

Average salary per year – $56,877

Civil Engineer

Civil engineers design and supervise the construction of large-scale construction and infrastructure projects. Since one of their responsibilities is to supervise they often go back and forth from the office and project sites. This position is vital in a construction project and the pay reflects this as civil engineers are one of the top five highest-paying jobs in the industry.

This career requires education from either Bachelor’s Degree, Master’s Degree, or Project Management Certification. Additionally, civil engineers usually have skills such as computers, detail-oriented, leadership, math, and troubleshooting.

Average salary per year – $91,790

Electrician

Electricians install and maintain the electrical and power systems in new and existing structures. This means they often work with complex wiring, circuit breakers, and also large factories.

An electrician’s career generally requires a four-year apprenticeship program that qualifies individuals for both construction and maintenance work. Additionally, some electricians also attend a technical school with programs related to safety practices, electrical code, and product training. Nevertheless, most states require electricians to have a state-issued license.

Average salary per year – $67,269

Safety Technician

Safety technicians do what you would expect— they oversee safety procedures, training, and equipment. It is their job to not only identify potential risks but also develop safety plans. If an incident occurs, a site safety technician would assist with the investigation and company reports.

This role typically requires some education from a technical school, community college, registered apprenticeship program, or industry training program.

Average salary per year – $67,720

Mason

Every brick, block, or stone used to construct walls or structural supports is crafted by masons. The most common material masons use is cement. Masons will monitor drying cement and ensure that the temperature, weather, and other elements don’t prevent the cement from drying flat.

Generally, masons begin with on-the-job training and shadowing a more experienced worker or apprenticeship.

Average salary per year – $56,784

Project Manager

Just like a project manager in any other industry, construction project managers are site leaders who coordinate, budget, and supervise projects. They oversee a variety of different teams and craft professionals from the start of the project to completion. This means that they must be a team player who is able to work closely with various individuals and create detail-oriented documents.

This position requires some training in either a Bachelor’s Degree, Master’s Degree, or Project Management Certification.

Average salary per year –$92,523

Building your future with construction careers

The list of construction careers mentioned above is only a small fraction of the careers available in this industry. There are many more positions available to consider each with varying degrees of education requirements and responsibilities.

Build America together with U.S. Bridge

At U.S. Bridge, we’ve been manufacturing and engineering bridges around the world for over 80 years. Check out our bridge designs or other available services on our website!

Interested in starting your project with us? Contact us for a free quote or check our exclusive Bridge Scope tool to start building your project today.

A Globally Booming Bridge Construction Market

,

With the sudden outburst of COVID-19 last year, many individuals were concerned about how it would affect the economy. Despite the negative effects of the pandemic, studies indicate a steady rise in the global bridge construction market.

Here’s a quick breakdown of the bridge construction market and what factors affect its growth.

The Construction Market

The construction market consists of sales made in the construction industry such as construction services and goods by organizations, sole traders, and partnerships that construct buildings or engineering projects (e.g., highways and utility systems). While the market primarily consists of the construction of buildings or other projects, it also includes the process and materials necessary for preparing new construction sites.

These materials are obtained from both domestic and international suppliers such as manufacturers and wholesale trade operators. The service and goods provided by this market include construction, civil engineering, specialty trade contracting, and other residential, non-residential, and engineering modes.

What Affects the Market?

A large market such as the construction market has several variables that come together to influence the industry. However, there are always key factors that contribute more than others.

The availability of raw materials, the technology for extracting and processing raw materials, government policies, and increased sustainability focus all greatly affect the construction market. A great example of this is demonstrated through the pandemic as many companies struggled to procure their materials from their usual international suppliers. COVID-19 created a significant impact on the industry that will greatly affect but not hamper the market moving forward.

Technology is an important factor that is pushing change in nearly every industry. Its influence over the construction industry is illustrated with more drone usage and 3D printing than ever before. Not to mention, new innovative methods of bridge construction such as modular and prefabricated designs.

The Projected Global Boom of the Bridge Construction Market

In 2019, the global bridge construction market was valued at $908.0 billion and projected to reach $1,212.6 billion by 2027. Thus registering a CAGR of 4.6% from 2020 to 2027.  The strong growth of this market is attributed to an increase in investments, government initiatives, and global economic growth.

The global urban population is expected to rise by 2050. Thus, fueling the demand for bridge construction and other transport infrastructure. Furthermore, the surge in the standard of living, particularly in developing countries is anticipated to drive market growth.

In addition, technological advancements are expected to encourage the growth of the market. These improvements in equipment and systems are intended to reduce the time and cost involved in bridge construction. This economic and urbanization boom is expected to fuel the expansion of the railway networks throughout the globe. Thus boosting the growth of the bridge construction market.

U.S. Bridge

Here at U.S. Bridge, we pride ourselves as leaders in the bridge construction industry. We’ve been engineering and manufacturing bridges for decades with services worldwide.

We understand that a bridge project is a major investment. That’s why we designed an effortless process for you to build a bridge that will last generations. Please contact us for a free quote or use our exclusive bridge design tool Bridge Scope for a quick five-minute scope. Together, we’ll build a better future for America’s infrastructure.