Q2

2022

the look
ahead

Labor Shortage

National Market Overview

Every day we are asked “When will this end?” or “Is the rest of the country experiencing this?” when talking about inflation and escalation. In the second quarter, inflation soared to a 40-year high. Wholesale inflation (Producer Price Index) experienced an 11.3% increase from June 2021 to June 2022 while the Consumer Price Index (the driving force of our economy) showed an increase of 9.1% in the same time frame. Central banks are using aggressive rate hikes to reign in inflation but at the same time high levels of personal savings from pandemic stimulus, backlogged demand, and a tight labor market keep the gas pedal on growth.

Construction
Indicators

The growth of aggregate input prices is expected to moderate until demand strengthens, bringing pricing patterns back to more familiar levels.

“The strategy has shifted from coordinating “Just-in-Time” deliveries to a “Get-it-Early” mentality. JE Dunn has pivoted to managing warehouses with staff to receive and track inventories. This has allowed us to identify deliveries at risk much earlier than standard practices.”

Bryan Cook

Vice President

Preconstruction Services Director

Advanced Industries Spotlight

Within JE Dunn’s Advanced Industries team, we service a variety of clients. These clients include semiconductor, large battery, and pharmaceutical manufacturers. The facilities that manufacture semiconductors are commonly referred to as “fabs.” Since 2013, we have been building fabs and have seen the demand for these facilities grow exponentially. Semiconductors include memory chips, microprocessors, and integrated chips used in items such as smartphones, TVs, computers, video games, advanced medical diagnostic equipment, and radios.

In this quarter’s spotlight, our Advanced Industries Preconstruction Services Director, Bryan Cook, takes an in depth look at the challenges facing the semiconductor industry and some of the construction solutions we are employing daily to mitigate these challenges.

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Current Events

Labor Today

If a U.S. business has reopened post-pandemic, chances are there’s a “Help Wanted” sign in the window. It seems every industry is scrambling to hire, not just the ones experiencing rapid growth. Many are struggling to replace employees lost during the pandemic while others are trying to retain the ones they already have.

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Current Events

Labor in Five Years

According to a survey from Manpower Group published in February of 2020, 70-percent of U.S. employers reported a shortage of talent even prior to COVID-19. The pandemic exacerbated two issues that have been looming over our population for decades, retiring Baby Boomers and a shrinking Labor Force Participation Rate (LFPR).

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