The asphalt industry is going through a spell of general positivity. Things are on the up in many ways. There is more revenue to go around. Companies are growing. Tax benefits are coming through. They are offering better jobs to asphalt workers. But there are still many problems that companies must face. If you are running an asphalt company in Los Angeles, or you work for one, you may want to know about these issues.
Here are the five most pressing concerns for asphalt contractors in Los Angeles going into 2018.
It is amazing to think that we have unemployment issues in the country, but asphalt companies are facing a shortage of skilled workers. Some get the impression that it is because workers do not want these intense jobs.
But that is not true. It is a combination of factors. People are encouraged to go to college. They look for jobs in other sectors. They may not even know you can get a full time job with benefits in the asphalt industry. It is up to the best asphalt contractors in Los Angeles to engage with prospective workers and show them what a good job it can be!
There is always a portion of asphalt work that will involve private clients. And those clients are very important. Whether it is remodeling or new construction, an asphalt paving contractor in Los Angeles can make good money on residential projects. But those are not the only source of income.
When it comes to commercial and governmental contracts, there are some funding issues. It is especially true with national infrastructure. We heard so much about the President’s plan for infrastructure that would be more than a trillion dollars. But do we know where this funding will come from? Is the plan even going to take shape?
There is a lot of money to be made from implementing technology in construction. There is an estimate from the World Economic Forum that construction companies can save up to $1.2 trillion in the next ten years because of improved efficiency through technology.
But will companies take the risk? For a driveway paving contractor in Los Angeles, it is easier to keep doing things in the same way. Rocking the boat with new tech is a scary proposition. But companies must take risks if they want to reap the rewards.
It is all about understanding how certain tech will make life easier for an asphalt paving company in Los Angeles. Then a company must figure out what it will cost to get that tech, train workers to use that tech and maintain that tech.
Asphalt paving tons are set to go up in 2018. That is following along from the trends from 2016 and 2017. It is a good sign for asphalt paving contractors around the country. But there are some issues in this area too.
A lot of oil refineries in the United States are shutting down in the coming months and years. This is a problem, because they provide about half the value to the asphalt industry. How will companies compensate for this issue? They are going to have to get their materials from the fewer open refineries, instead of relying on a broad spectrum. And that means prices could go up.
It is amazing how many trucks are required to get asphalt materials from one part of the country to another. Finding reliable truck drivers is not easy. It is a problem the asphalt industry must tackle quickly.