The excitement buzzing throughout the industry right now is palpable.
Portable plants are running hard. Demand for construction materials is high. And new equipment is desired to keep up with it all.
Producers and contractors have a lot to feel good about midway through 2022, as a number of the variables central to a healthy business environment are favorable for the months and years to come.
Unfortunately, very real issues like inflation and labor remain. Diesel pricing, for example, is a major pain point, with costs entering uncharted territory for operators across the U.S.
The U.S. Energy Information Administration noted that the average price of on-highway diesel fuel for the week of May 23 was $5.57. During the same week in 2021, the price per gallon was merely $2.31.
Consider, too, that diesel reached that $5.57 mark just a week before Memorial Day. So who’s to say what the average price of diesel is as summer driving season takes off and operators settle into their production routines.
Wages and salaries are another cost area producers and contractors are tasked with staying on top of. Hiring and retaining good workers was a problem before inflation took hold. The challenge is even greater today, as prospects arguably have more job options to consider than ever before.
I’ve heard multiple readers share how employees bailed on their companies to drive for Uber or Lyft – and they aren’t exactly coming back to our industry.
Portable plant operators are crafty, though, and accustomed to doing more with less. But nobody wants to turn business down because staffing isn’t where it needs to be. This is happening at the moment because of high materials demand, but the readers who say it’s taking place concede that it’s a good problem to have.