b'SUPPLY CHAINSUPPLY CHAINAggregate suppliers battle DISRUPTIONS escalating costs and uncertain By Warren Heeley delivery timesI ndustries worldwide are saddled with a supply chain that hascommodities, including steel, parts, equipment and vehicles, states changed dramatically since March 2020, when the COVID-19James Gordon, materials manager at Fowler Construction. These pandemicerupted.Double-digitpriceincreases,substantialprice increases, coupled with longer shipment timelines and difficult surcharges and ever-present uncertainty about order deliverylabour markets, are the norm we are dealing with at present.times became the norm, causing major business disruptionsSteelpriceshavebeengoingthroughtheroofsaysJamie for companies throughout the globe. Today, uncertainty continuesArmstrong, vice president at Amaco Equipment Inc. This, in turn, has to be the name of the game as businesses try to sort out whetherbeen seriously affecting prices for heavy equipment and vehicles. The this is a short-term issue or a supply chain norm for the longerterm. escalating steel costs have resulted in surcharges for our equipment The aggregate industry is by no means sheltered from these supplythat began at five per cent in early 2021 and have increased to 15 per chain problems. The disruptions began in the pandemics first monthscent, says Armstrong. We are seeing producers delaying purchases asproductionincountriesalmosteverywherefacedclosuresandand repairing older equipment because of the sizable cost increase to lockdowns from government measures introduced to stem the tide ofnew equipment caused by the surcharge.the virus. Economic principles then took over: less supply led to rising prices as the infection waves continuedStatsCans Industrial Product Price Index (IPPI) recorded into 2021. an increase of 15.4 per cent from July 2020 to July 2021. Seventeen of the 21 groups in the index showed price In the Ontario aggregate sector, OSSGAincreases, with iron and steel prices jumping 50.9 producersandsuppliersconfirmedthatper cent over the 12-month periodthe largest they are paying more for materials whileincreaseonrecord.Energyandpetroleum deliveryleadtimeslengthen.Goingrecorded a 46.9-per-cent increase in the same hand in hand with the mentioned supplytimeframe. chain challenges is the growing inability tofindskilledworkerstofillpositionsIn the past, companies could easily absorb ataggregatefacilities,whichalsohassmall price increases in commodities like fuel, become heightened because of COVID.parts and equipment. However, repeated price increases within a single year simply have to be As an aggregate producer, our companypassed on to aggregate customers for suppliers to hasseendouble-digitincreasesinneededremain profitable. 8 AVENUESWINTER 2022'