An Inside Look SUPPLY CHAIN PERSPECTIVES PITANDQUARRY.COM North Coast Media LLC 1360 E. Ninth St., Tenth Floor Cleveland, OH 44114 Phone: 216-706-3700 Fax: 216-706-3711 EDITOR-IN-CHIEF Kevin Yanik 216-706-3724 | kyanik@northcoastmedia.net MANAGING EDITOR Zach Mentz 216-706-3747 | zmentz@northcoastmedia.net ASSOCIATE EDITOR Carly McFadden 216-363-7930 | cmcfadden@northcoastmedia.net MSHA & THE LAW COLUMNISTS Bill Doran | william.doran@ogletree.com Margo Lopez | margaret.lopez@ogletree.com AGGREGATE FORECAST COLUMNIST David Chereb | david.chereb@sc-marketanalytics.com MARKET INSIGHTS COLUMNISTS George Reddin | greddin@fminet.com Scott Duncan | sduncan@fminet.com WESTERN U.S. CORRESPONDENT Loretta Sorensen ART DIRECTOR Kim Traum 216-706-3779 | ktraum@northcoastmedia.net GRAPHIC DESIGNER Courtney Townsend 216-363-7931 | ctownsend@northcoastmedia.net JR. GRAPHIC DESIGNER Olivia Newman 216-706-3780 | onewman@northcoastmedia.net PRODUCTION SERVICES MANAGER Terri Johnstone-Mueller I n last month’s Start-Up Guide, we reported how supply chain disruptions were surfacing and how aggregate producers could face delays if they don’t have necessary components on hand or readily available with their dealers. That supply chain disruptions theme carried over to our preparation for this month’s issue, with equipment suppliers sharing what they’re seeing on the front lines of the supply chain. According to suppliers, the source of disruptions isn’t necessarily any one thing, but several. “Even if you can source parts and raw materials, it is getting harder to find modes of transport to get them from where they’re manufactured to where they’re used,” says Joe Grell, vice president of heav y capacity at Rice Lake Weigh-ing Systems, who also addresses trends in scales and weigh-ing this month in an article on page 40. “That’s the first issue we’ve noticed.” Steel prices have been going up for months, Grell adds, and they’re now at a record high. That dynamic has created issues for some manufacturers who purchase steel from local service centers, both in terms of cost and availability. Delays in overseas shipments are common these days, as well, with Kimball Equipment’s Mark Oviatt noting in last month’s Start-Up Guide that new pressures were recently intro-duced to the supply chain. “Prices are certainly going up, and there Kevin Yanik are tariff wars with China,” says Oviatt, EDITOR-IN-CHIEF president of a dealer operating locations in six Western states. “Most of the steel manga-nese comes from India or China, so shipping Steel prices have times have increased. China has some issues been going up for with their foundries.” several months, Sheldon Shepherd, aggregate division sales manager at Tecweigh, has also observed and they’re now at supply chain disruptions that originate over-a record-high level. seas. The aggregate industry is far from the only industry being impacted, though. “You can easily see how chips for automobiles and trucks – including me-dium-duty and 1-ton trucks – are being impacted just because of a shortage,” Shepherd says. “That’s a big deal.” And it only takes one part to disrupt the manufacture of a piece of equipment. “What occurs a lot is you have a piece of equipment that needs, say, 100 parts,” Shepherd says. “You have 99 of those. Sometimes, you can build the whole thing and wait for part No. 99, or you may be stuck and can only build it 30 percent of the way. You’re waiting extra weeks for that specific part because you can’t continue and finish it.” Supply chain disruptions are also creating problems for contractors, with the Associated General Contractors of America reporting that construction costs are going up and projects are slowing. See page 16 for more. P & Q 4 PIT&QUARRY April 2021 216-978-9622 | tjohnstone@northcoastmedia.net GROUP PUBLISHER Rob Fulop 216-706-3741 | rfulop@northcoastmedia.net ASSOCIATE PUBLISHER Dino Vitanza 216-706-3744 | dvitanza@northcoastmedia.net PRESIDENT & CEO Kevin Stoltman 216-706-3740 | kstoltman@northcoastmedia.net V.P. FINANCE & OPERATIONS Steve Galperin 216-706-3705 | sgalperin@northcoastmedia.net V.P. GRAPHIC DESIGN & PRODUCTION Pete Seltzer 216-706-3737 | pseltzer@northcoastmedia.net EDITORIAL DIRECTOR Marty Whitford 216-706-3766 | mwhitford@northcoastmedia.net SR. AUDIENCE DEVELOPMENT MANAGER Antoinette Sanchez-Perkins 216-706-3750 | asanchez-perkins@northcoastmedia.net DIRECTOR OF MARKETING & EVENTS Michelle Mitchell 216-363-7936 | mmitchell@northcoastmedia.net EVENT MANAGER Allison Blong 216-363-7922 | ablong@northcoastmedia.net MARKETING & SALES MANAGER, BUYERS’ GUIDE Emily Adkins 216-675-6006 | eadkins@northcoastmedia.net LIST RENTAL, THE INFORMATION REFINERY, INC Brahm Schenkman 800-529-9020 | bschenkman@inforefinery.com REPRINTS & PERMISSIONS Wright’s Reprints northcoastmedia@wrightsmedia.com CLASSIFIED ADVERTISING 216-675-6006 | eadkins@northcoastmedia.net SUBSCRIPTIONS / CUSTOMER SERVICE 847-513-6030 | pitandquarry@omeda.com Fax: 847-763-9694 Web: www.pitandquarry.com/subscribe