Within the recently passed bill, almost $550 Billion is being allotted towards “hard infrastructure” which will help promote safe travel and ensure the efficient transport of goods and produce across the country.
Over the next five years the bill will help to improve and build all types of infrastructure including bridges, roads, railroads, and airports; water, energy, and broadband systems; electric vehicles, and environmental remediation.
After the challenges COVID19 has left us with, this bill can be considered a huge help. This will be a push in the right direction to positively impact our economy. However, we are facing new challenges as we try to predict the impacts the Infrastructure Bill will bring to the table and we must prepare ourselves for the road ahead.
What does this mean for the Lumber and Pallet industry?
What this means is that critical steps still need to happen before infrastructure funding begins to flow to government entities, businesses, and other infrastructure plan stakeholders. Once the projects for new construction, repair or upgrades begin; demand in labor, EOM, raw materials, and services will skyrocket. The direct consequence will be a price increase in services. During the past weeks, we have been discussing the various factors affecting our industry, labor and material shortages, and shipment delays were among them and with this bill they may get worse in the months to come.
It is easy to foresee how the increased demand and high prices could further weaken our supply chains. Therefore, not just the obvious sectors of our businesses will see the effects (Crane Matts, Lagging, Pallet manufacture, and our Industrial Roll services for the manufacturing plants in the steel, aluminum, and wire industries), but so many more.
We at Timber Industries have been brainstorming and are trying to stay ahead of the market to minimize as much as possible any negative impact the bill will generate. We will be on the lookout for any new opportunities that may develop and we can make the most of them.
Yes, the next few months will be critical but we will look at it as one more opportunity to prove to our clients we can step up to the challenge. We are ready! Are you?
Share your thoughts! What other challenges can you identify the infrastructure bill will present in the next years, not just for the Lumber and Pallet industry, but for any other?