The supply chain is starting to stabilize somewhat. Prices have finally stopped soaring. An Engineering News-Record article confirms the cost of construction materials is slowly becoming steady. In fact, a few have seen their costs drop. However, some construction materials cost more than they did before the COVID-19 pandemic.
The Bureau of Labor Statistics Producer Price Indexes (PPI) — as of this writing — indicate the price of concrete has gone up by almost 10% since 2022. The PPI shows building paper and building board mill products went up by close to 8%. Clay construction products increased by 6.4%, general machinery and equipment by 6.1%, and construction machinery and equipment by 6%.
Challenges in Addition to Construction Material Costs
As if those were not enough, construction contractors say they’re dealing with long lead times for machinery and equipment. Even if they have the equipment they need, contractors face higher diesel prices. This is not a good time to face this issue as the government has increased spending on infrastructure projects.
That’s not the only thing that the construction industry must contend with as labor issues are throwing a wrench in their plans. The competitive labor market favors workers as average wages have gone up about 17% since the start of the COVID-19 pandemic per a Deloitte report. It references BLS data that states average hourly wages have gone up by 5.2% year-over-year, which translates to $36.70.
Consequently, the cost of machinery and equipment is 26% higher than it was at the start of the pandemic. As of August 2023, it was a 6% increase year-over-year.
Many stakeholders including the United States government support environmental, social, and governance (ESG). As a result, many stakeholders demand that contractors prioritize sustainability. Deloitte points to International Energy Agency data that reveals buildings are responsible for 30% of global energy consumption and 26% of energy-related emissions.
This means the industry needs to work on adopting sustainable construction practices and efficient building materials. Moreover, the International Energy Agency’s Net Zero Emissions by 2050 Scenario (NZE) requires all new buildings and one-fifth of existing structures must be zero-carbon-ready by 2030.
The U.S. government has the Federal Buy Clean Initiative, which leads to the procurement of lower-carbon construction materials. And on that list is concrete. The industry needs to get creative in finding solutions to balance sustainability, efficiency, and resilience in design. The growing number of severe weather events is forcing the industry to focus on building resilient infrastructures.
How to Combat Rising Construction Material Prices
One of the key tools for countering the higher costs is to invest in digital technologies like artificial intelligence (AI). These technologies can optimize projects. This includes everything from design and schedules to inspection and quality insurance.
As with any new technology, it’s essential to have human involvement and oversight to ensure its proper functioning and avoid any potential issues. Technology alone cannot perform miracles in boosting productivity and saving on costs. Optimizing technology requires people and processes. Deloitte explains that ensuring high-technology adoption requires companies to have a strong team of partners. These partners include vendors, contractors, automation vendors, and technology providers.
It’s also important that construction companies protect their assets and materials at all costs. Theft of construction materials and assets will be costly. Thus, security technology becomes a priority.
As you know, delaying projects can be very expensive. Recall that longer lead times are a major problem in the industry. If machinery, equipment, or materials are stolen, then the cost of replacing them will be staggering.
For one thing, the longer you wait for replacement, the more expensive the delay. Secondly, the cost of the materials to replace the stolen ones will eat into profits. When the materials were originally purchased, the prices were most likely lower.
There’s one security technology that comes with multiple layers of security and can deliver a fast return on investment.
Security Technology That Protects Construction Materials and Assets
While you can’t calculate employee and visitor peace of mind, you can estimate the costs of delaying the project. It can be a challenge to figure out the ROI of construction security. More so if a construction company hasn’t had a theft or other criminal incident.
Consider the cost of one piece of equipment or concrete that you have on hand. How much did it cost you? If either is stolen, how long will it take to replace, and at what cost? It may cost more to replace than what you originally paid. With the longer lead times, you’re facing a lot of delays. The price tag might be exorbitant and could potentially cause the project to become a loss instead of profitable.
The next step in analyzing the return on investment of construction security is to review the available security options, their capabilities, and their benefits. Traditional security systems have a one-track mind. In other words, they can only do one thing. Basic video cameras record everything that happens. That’s it. They don’t react when there’s a problem.
If you have security guards watching the monitors, then they may miss something. Most of them aren’t trained in monitoring. They have other responsibilities, which divides their attention. Humans are good at knowing what to do in any given situation, but they’re not good at watching hours of videos without some kind of help.
This is where video surveillance with remote monitoring stands out from other construction security solutions. This solution can proactively help deter theft, save everything the cameras see to recordings, have humans respond to the problem situations, and reduce liability risks on construction sites.
For the most effective video surveillance with remote monitoring, look for a solution that integrates video analytics and human intelligence. Each has its strengths and weaknesses. When you combine them, they can be a powerhouse team. Watching the monitors for hours is mind-numbing for humans. Someone without proper training also won’t know what to watch for and how to properly respond. Therefore, you want to find a partner that has trained monitoring operators.
Video analytics is necessary to close the gap that comes with being human. With the two working in conjunction, construction sites can have both human and computer eyes all over them. A security partner trains video analytics on what to watch for by programming many scenarios to scan. Anytime the video analytics recognizes a match, it signals the monitoring operator. The operator can review the scenes and respond based on what the situation requires.
This could be a phone call to an emergency operator, alerting the people on-site through an onsite speaker, or calling the on-site guard or project manager to report a problem.
The pairing of video analytics and trained humans cuts the risk of false alarms and increases the chances of spotting shady activity. The advantage of using remotely located trained monitoring operators is that their lives are never at risk.
When lives are at risk, humans don’t necessarily respond the way they should. This is why law enforcement undergoes a lot of training.
Considering video surveillance can records and save everything it sees; you’ll have access to all the proof you need. The other advantage of working with a security partner is they have an experienced team of video analysts who can quickly search hours of videos to locate the incident and provide the clip.
Combine all these benefits of video surveillance with remote monitoring and you’ll get a quick return on your security investment. Take a look at this case study that shows how a construction company used cameras to improve productivity and know what’s happening on the site. Video surveillance with remote monitoring is much more than a crime deterrent. It helps minimize delays and costly construction material and equipment replacement.
In another construction case study, a client was having a problem with theft and other things. In addition to preventing crime, the client uses video surveillance to manage who enters and exits the site. They also check their site from their phone any time of the day. They don’t have to contact the monitoring operators.
The high-level views of the construction site give project managers a better understanding of how the layout is working or not working. The views can help organize the construction site in the safest way possible. For instance, managers check the views to verify heavy equipment and foot traffic are safely away from each other. They can also map out the site to shorten distances for transporting material around the site.
Construction companies have a responsibility to keep their workers, contractors, visitors, and clients safe. Construction sites contain many risks besides theft and safety. Remote video surveillance will help protect your expensive assets including construction materials and boost worker safety. The rising costs of construction materials justify the need for efficient security.
If anyone outside of the company learns about the crime or incident, it can affect the public’s perception of the construction site and the company’s reputation. If you’ve never had a crime happen at a site, don’t wait until something happens to act.
For a detailed review of this topic, pick up the construction security and safety best practices guide. This guide covers construction site challenges and provides solutions. It contains industry best practices to help construction companies ensure their sites are safer and more secure. If you’d like to learn more, feel free to contact us.
Texas Private Security License Number: B14187
California Alarm Operator License Number: ACO7876
Florida Alarm System Contractor I License Number: EF20001598
Tennessee Alarm Contracting Company License Number: 2294
Virginia Private Security Services Business License Number: 11-19499
Alabama Electronic Security License # 002116
Canada TSBC License: LEL0200704
