Food Plant Construction: Local Labor vs. Self-performing Contractors

The construction industry continues to face a tight labor market as contractors manage ongoing demand, leaving some no choice but to turn down projects if their workforce cannot meet the project needs. In 2021, more than 40% of construction firms reported turning down work due to labor shortages, according to the U.S. Chamber of Commerce

However, demand for construction workers is only expected to rise. In November 2021, President Joe Biden signed the $1.2 trillion bipartisan Infrastructure Investment and Jobs Act into law, which is expected to create an average of 1.5 million jobs each year for the next decade and provide $550 billion to improve the nation’s infrastructure over the next five years. This legislation would fund airports, ports and waterways, roads, bridges and more, which would provide food plant owners with better access to farms, raw ingredients and distribution channels. 

As demand rises, plant owners should understand the options for securing the necessary labor to complete their new-build or expansion projects and how their choices could impact the project lifecycle. 

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2022 Recap: Our Top 5 Blog Posts of the Year

This past year has been a big one in the food and beverage industry, with new technology rolling out and (some) supply chain constraints waning. While new trends and practices are already appearing for 2023, it’s critical for manufacturers to reflect on 2022’s challenges and successes when planning for the one ahead.

That’s why we’re revisiting the topics our readers found most useful this year. From coffee trends to labor availability to cyberattacks, here are the five most popular Food for Thought posts of 2022.

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4 Strategies for Mitigating Supply Chain Disruptions in Your Next Construction Project

Construction firms are fighting an uphill battle to maintain project budgets and schedules as the industry grapples with global supply chain disruptions. 

The Associated General Contractors of America (AGC) reported that material prices for nonresidential construction soared 21% from February 2021 to February 2022, and analysts predict costs will continue going up. Additionally, logistical bottlenecks such as overseas shipping delays and shortages in the transportation sector are drastically impacting project lead times. 

Stellar’s industry veterans are discovering there are ways to mitigate supply chain disruptions and their effects on construction projects — but only if construction firms are willing to shift their paradigm and use a different approach when working with their clients. 

Here are four ways our teams are navigating the waters.

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How Blockchain, IIoT and AI Make the Global Supply Chain More Resilient

The Suez Canal blockage in March 2021 pointed out a major pinch point — for lack of a better term — within the global supply chain. One ship getting blown off course during a predictable sandstorm halted 12% of global trade — an estimated $9.6 billion per day. While the Ever Given was freed after six days, the ripple effects of the event will be felt for months due to the thousands of ships delayed in those six days.

Witnessing the magnitude of what a single ship mishap can do to interrupt global trade makes it obvious that safeguards need to be put in place to prevent such events in the future. If an accident put a stop to 12% of global trade, what kind of damage could an intentional act inflict?

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