Builders and construction companies often rely on offshore construction material. Amidst the global coronavirus outbreak, the risk of production delays is inevitable.
A lot of material comes from China, the temporary closing of Chinese factories in February is beginning to show a slight slowdown in the timelines of major construction projects. The effect of factory closures has been inevitable. Whereas new findings show it is now more difficult to send equipment from China to Australia because goods are being restricted by the Australian Government.
The expenses of such delays bore by companies, triggering expense of up to $20,000 per day on large building projects.
In saying that not all companies depend on materials from China, some have entire supply chains located within Australia and Europe wide.
It’s important for clients to understand the real reason behind the delays and give time to companies to arrange for alternative suppliers.
Director of Pulis Constructions, Michael Pulis, was quoted “We need to ensure the construction delays are addressed with clients beforehand. At present we need to be able to source other suppliers and ensure our clients and employees understand the situation.”
This also brings in another issue of how we have narrowed our supply chain options. Here on it’s highly encouraged that companies diversify their supplier to multiple around the globe to enjoy an undisrupted supply of materials.
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