Busy Year for the Paving Industry

February 2, 2022
Busy Year for the Paving Industry

Paving Industry Shortages

"Order now! Supplies are limited!" We hear that all the time these days, from TV to radio to your Amazon account where there are only three boxes left—YIKES!

The creation of FOMO (fear of missing out) is the marketer’s 2022 call to arms. Unfortunately, this is one of those times.

All indications are that 2022 is going to be a busy year for the paving industry. The key word here is shortages. If you have asphalt paving, concrete, seal coating or striping needs in the months ahead, here’s why you should sign that contract now.

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The Potential Shortage of Contractors

H.R. 3684, the Infrastructure Investment and Jobs Act, was signed into law on November 15, 2021. This means that federal highway and infrastructure projects will be readily available and commercial pavers who prefer this kind of work will be actively bidding on these plentiful projects. The result will be a decrease in availability of commercial paving companies.

Supply Chain Issues

Supply chain issues have plagued all types of businesses in the past 12 months and relief does not appear to be on the horizon. At Kansas Asphalt, we have struggled to keep up with demand for such things as marking paint, PPE and even material. Asphalt shortages are occurring because of a steep decrease in oil production as well as increased prices. Forbes reported a few months ago that just before the pandemic, domestic oil production was 12.8 million barrels per day. Production remained at that level despite the “double-whammy” of a price war between Saudi Arabia and Russia and growing loss of demand as a result of the pandemic. The situation became unsustainable, and the price of oil dropped so low that some producers were forced into bankruptcy. The result was the largest short-term oil production drop in U.S. history. Thankfully, the oil rig count is slowly recovering, but the downside is that it can take months at a minimum for new drilling to turn into oil production.

The Current Manpower Shortage

Finding and retaining a talented and motivated workforce is a real challenge these days. Americans are faced with childcare issues and financial woes as well as healthcare concerns and vaccine hesitancies as the pandemic continues. At Kansas Asphalt, we are fortunate to have an incredible team that is ready to start projects.

Inflation

Prices are going up. The cost of producing and trucking materials is continuing to increase with no relief in sight. As demand continues to skyrocket, the cost of construction equipment continues to rise with Ritchie Bros. reporting an over 20% increase in cost over the past year. Locking in a contract now could save you thousands of dollars in the months ahead.

But take heart! The future isn’t all doom and gloom.

Although the current economic situation is difficult, the paving industry continues to thrive. We still proudly work with the most recycled products in the world. Sustainability is our mantra, and we are constantly finding new ways to save energy, lower emissions and speed up the paving process. We employ cutting edge technology, such as high-tech paving machines that require less manpower to operate and the creation of new mix designs that incorporate post-consumer plastic into our asphalt. At Kansas Asphalt, we are excited about the future, and in these tough times, we want you, our customers, to be aware of the challenges we face so that we can provide you with the best job for the best price this season.

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Featured Project

Distribution Center needs a new surface

After a concrete lot's total failure, Kansas Asphalt conducted a full assessment and developed a program to replace the surface and sub-grade over two years. The result was a new lot for this busy center, without interruption to business.

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"Kansas Asphalt has been one of the best companies that I have used in the Southeast U.S. for remediating lot surfaces – asphalt, concrete and limestone."

Regional Facility Specialist
Little Rock, AR
International Bottling Company

 

Featured Project

Busy retail store needs a new lot

Kansas Asphalt led the way for the construction management of the asphalt and concrete spaces on this busy lot and the business stayed open during the remodel of the lot. Kansas Asphalt worked for both the client and the third-party engineering firm in coordinating the schedule, activites, and great execution.

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"This was a complex project, but it was easy working with Kansas Asphalt.”

Engineering Lead
Kalispell, MT
Large Engineering Firm

 

Featured Project

A log deck needs to improve water quality

Kansas Asphalt installed an asphalt plant on site, and organized a program to pave the 17-acre log deck over three years.

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“Kansas Asphalt has been great to work with, consistently adhering to specs and timeframes as well as navigating any problems that we encounter on our projects.”

Vice President of Forestry Services
Large Timber Company

 

Featured Project

Keeping the water out

A hospital customer was experiencing continual water intrusion at one of their city campus locations in an area enjoyed by staff and visitors alike. Kansas Asphalt was able to identify and resolve the problem.  

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"I know when I work with Kansas Asphalt the project will go smoothly."

Head of Real Estate
Large Hospital System

What We Do

Our capabilities to support parking lots are wide and deep. Whether you need a surface treatment, a full replacement or an expert to help with your project, we have a solution.

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