There is an unprecedented shortage of asphalt sealcoating products in the market today. This is as a result of the extended city-wide lockdown since 2021 in China that impacted business operations and international supply chains.
According to the National Pavement Contractors Association (NPCA), this has resulted in a dramatic increase in the price of asphalt sealcoating products, with some contractors reporting an increase of over 100%.
In order to offset these increases, some contractors have had to reduce the frequency of applying sealcoat to their projects. Others are using alternative products such as emulsions and cold mix asphalt.
While these changes may help to extend the life of your asphalt pavement, it is important to consult with a professional before making any decisions. They will be able to advise you on the best course of action for your particular project. Some of the effective coping strategies top asphalt companies like Pinx Group have adopted to cope with this shortage are as follows:
Use Of Asphalt Repair Supplies Already In Stock Pile
One of the ways companies are able to still provide their clients with asphalt pavement repair is by using the asphalt repair supplies they already have in stock. This way, they can save on both time and money by not having to order new materials.
Another way to make your asphalt pavement last longer is by adding additives to the mix. This can help to improve the durability of the pavement and make it more resistant to damage. Some of the most common additives used in asphalt mixes are polymer modified binders and rubberized asphalt. These additions can help to increase the life of your pavement by up to 50%.
There is also the option to use recycled materials. Recycled asphalt pavement (RAP) can be used as a partial replacement for new asphalt. This can help to reduce the cost of your project while still providing a high-quality product. RAP is made up of old asphalt that has been crushed and recycled. It is then mixed with new asphalt to create a new pavement.
Using these methods, you can extend the life of your asphalt pavement and save money in the long run.
Companies are now able to use smart computerized systems to manage timing for material orders to ensure that they don't order too much or too little. This effective ordering can help to save money and time while still providing a high-quality product.
It is important to work with a company that you trust to help you choose the right materials and manage your project effectively. Working with an experienced contractor is the best way to ensure that your project is completed on time and within budget.
Negotiations on Long-Term Agreements With Suppliers
One way companies are coping with global supply chain challenges is by negotiating longer-term agreements with their suppliers. This gives companies some stability and predictability in an otherwise uncertain market.
It can also help to get better prices from suppliers since they know that they have a guaranteed customer for a set period of time. Long-term agreements are not always possible or desirable, but they are worth considering if your company is struggling with supply chain issues.
Another way to cope with global supply chain challenges is to diversify your supplier base. This means working with multiple suppliers from different countries or regions. The benefit of this approach is that it reduces your dependence on any one supplier. If one supplier has a problem, you can still get the materials or products you need from another. This approach requires more work on your part to maintain relationships with multiple suppliers, but it can pay off in the long run.
Preparation for Long Haul by Stocking Up
When you know a hurricane is coming, you head to the store and stock up on supplies. The same principle applies to your business. If you know that a global supply chain disruption is likely, it pays to stock up on materials or finished goods. This way, you can keep your business running even if there are delays in receiving new shipments. Keep an eye on your inventory. If you're worried about supply chain disruptions, it's important to keep a close eye on your inventory levels. This way, you'll know when you need to reorder products or materials. Staying on top of your inventory will help ensure that you don't run out of supplies during a disruption.
Buy Locally Available Products As Much As Possible
In an attempt to get better pricing, many companies source products from overseas. However, this reliance on foreign suppliers can be risky during a global crisis. If possible, try to buy products that are locally available. This way, you won't have to worry about disruptions in the supply chain. Additionally, buying locally will support your community and help boost the economy.
Proper Expenses Management and Strategic Spending
Like all businesses, it is important to manage your expenses and only spend money on things that are absolutely necessary. In difficult times, this becomes even more important. Make sure you have a handle on your finances and only make purchases that are absolutely essential.
Strategic Price Increases
In difficult economic times, it is tempting to cut back on marketing and advertising. However, this can be a mistake. Marketing and advertising are essential tools for growing your business. Instead of cutting back, try to be smart about your marketing and advertising expenditures. For example, focus on cheaper forms of marketing, such as social media or email marketing. These methods can be just as effective as more traditional (and expensive) forms of marketing and advertising.
The benefit of good marketing is the ability to get enough clients to justify strategic price increases. When you have a well-oiled marketing machine, your business can charging what it's worth without fear of losing business to the competition.
Coping with global supply chain management challenges can be a difficult task for business owners. Fortunately, there are a number of ways to overcome these challenges. By being aware of the potential problems and taking steps to mitigate them, you can keep your business running smoothly - no matter what the future holds.