Chaotic Markets and a Tight Workforce
At ZEN Industries, we
know business is always a challenge. We’ve been in the HVAC duct
fabrication industry since 1999.
Over the years, we’ve added many services and developed internal
processes, including duct drawings, HVAC estimating, automating HVAC
production requests, and more.
It’s from that extensive experience that we recognize how
challenging and somewhat chaotic today’s industry has become.
Things are changing so rapidly, that we expect some of the stats in
this article will have already changed by the time you've finished
reading it.
Raw Material Pricing
The
war in Ukraine and continuing supply chain bottlenecks have caused
raw material prices to skyrocket in a matter of weeks.
The SWIFT bank sanctions are blocking customers from buying key
raw materials from Russia, diverting resources like coking coal from
Russia to Asia, where resources can be paid for in China’s yuan and
India’s rupee currencies.
A few examples of increasing costs include.
- Domestic Hot Dipped Galvanized prices up 30% over last
month.
- Prime scrap prices up 54% since early March.
- Coking coal prices are up 520% in one year.
- Hot-rolled coil steel (HRC) could rise to $1,300-1,400/short
ton in the coming months.
- In January, zinc prices were predicted to tumble due
to oversupply. By March, it looked more like a 14% increase
moving toward record highs.
Only last year, HRC steel was touted to be near its peak and
price easing was on the horizon. Today, the world is shuffling
sourced materials and supply lines in a way that hasn’t been seen in
a generation, thus making the industry even more hectic, confusing,
and unpredictable. Unfortunately that type of instability and chaos
comes at a high cost, not just with material pricing but with labor
shortages.
Workforce Limitations
In
the face of price increases and supply chain challenges, the US is
also in a situation of labor shortages.
Today, there are nearly five million more jobs than available
workers. Jobless claims are at a 52-year low. Even if that situation
begins to improve, it speaks to a generational gap in needed labor.
The situation hasn’t gone unnoticed.
30% of high school students have switched to “skilled labor” vs
higher education. That is a major change of more than 4 decades
coming. Of course, just like supply line disruptions, a market need
does not necessarily supply the needed resources. Who is going to
teach and train all of those new trade students?
Certainly, the change in direction is essential to the future of the
US manufacturing, construction, and support trades, but the timeline
needed to make a difference is years away.
In the meantime, the labor gap has to be filled, and robotics and
automation are the answers.
A good example is the
Hilti Jaibot, a drilling robot designed to support mechanical,
electrical, plumbing and interior finishing work. With a completely
cordless system, the Jaibot works for up to 8 hours on a charge and
has a built-in dust removal system. Using digital plans, the Jaibot
marks and drills holes, especially including overhead holes which
are very strenuous for crews to do manually.
Even drywall installation and finishing, traditionally a specialty
trade requiring skilled craftworkers, is being challenged by robots
like
Canvas, from the company of the same name. This robot is able to
semi-autonomously finish large sections of drywall, including the
application of the finishing compound and sanding. For now, humans
are still needed to do the taping and handle more complex
geometries.
Boston Dynamics has introduced
Spot for Construction, an agile robot that can walk a
construction site and serves in the role of data capture. Spot has
been so well-received that Boston Dynamics has partnered with
Trimble, giving Trimble exclusivity to sell and support the Spot
robot with integrated scanning, total station, and Global Navigation
Satellite System (GNSS) technologies.
With inflation increasing and laborers in tight supply for some time
to come, robots are going to be seen filling more and more gaps in
fabrication, manufacturing, and construction.
Partner with ZEN to Do More and Earn More
In such an unstable market, in a time of supply chain and labor
challenges, let ZEN
Industries be your partner in the HVAC Industry. As an
experienced, high-quality manufacturer of HVAC duct of all types,
our goal is to partner with our customers in a way that makes the
entire workflow from order to installation a seamless exercise in
time and cost savings.
As a commercial and industrial fabricator for over 22 years, ZEN
Industries supplies traditional
Rectangular Ductwork
as well as
Spiral Ductwork,
PCD Ductwork, and
Industrial Welded Ductwork.
Success is All About Great Service
Founded in 1999 on a set of unbreakable core principles, ZEN
strives to provide top-quality fabrication, advice, and planning for
our customers.
The quality of our HVAC duct work is of the highest caliber and
our price is competitive with the best in the industry. Of course,
ZEN Industries gains its edge with unbeatable service, and
service means people - it's about our experienced personnel and the
relationships we build with each and every customer.
At ZEN Industries, we believe success is all about great service.
Our affordable HVAC shop drawings, estimating services, and duct
fabrication can be reached at 877-600-0274, or visit our
Contact Us
page today!
Learn more at
www.ZENindustries.com
