Challenges likely to persist as competition for key
components increases; DPR Construction says to align and procure
early and be agile in approach
WASHINGTON, June 28,
2024 /PRNewswire/ -- Supply chain delays
continue to affect construction across the globe, especially for
data center facilities. DPR Construction recommends collaborative
procurement planning and built-in flexibility to help project teams
maintain schedules and get new data centers online as planned.
According to McKinsey & Company, the U.S. data center demand
is expected to grow at an average compounded annual growth rate of
10 percent a year until the year 2030. With demand booming,
especially with the growth of the Cloud and AI, owners need to be
proactive if they hope to head off supply chain issues and achieve
speed-to-market.
"Data center development, advanced manufacturing and large
infrastructure projects are all competing for a similar work force
and critical components," said Kurt
Wallner, a leader in DPR Construction's advanced technology
core market at Bisnow's DICE East event.
While Wallner said markets for various commodities have started
to level out, there are several key components that require
longer-lead planning such as utility grade transformers,
generators, and MV switchgear.
"Not only is the demand for critical components off the chart,
but we also need to look at the geopolitical landscape," Wallner
said, noting that global conflicts, new tariffs and more have
caused jolts in the supply chain, especially on the component
level. Additionally, some manufacturers are seeing zero to little
margin and, if a small disruption occurs in any one of the
components' manufacturing processes, that will affect equipment
vendors.
Wallner proposed steps project teams can take to mitigate
potential supply chain issues. Aside from buying early, Wallner
suggested:
- Communicating and aligning all parties toward common goals for
projects and their end users.
- Standardizing the functional needs of equipment and materials
but being flexible when looking for alternative solutions.
- Engaging with trade partners to procure key project components
while seeking technology innovations to reduce rework and
changes.
About DPR Construction
DPR Construction is a forward-thinking, self-performing general
contractor and construction manager specializing in technically
complex and sustainable projects for the advanced technology, life
sciences, healthcare, higher education and commercial markets.
DPR's portfolio of work ranges from large-scale new construction to
small tenant improvements and special projects. Founded in 1990,
DPR is a great story of entrepreneurial success as a private,
employee-owned company that has grown to a multi-billion-dollar
organization with offices around the world. Strategically focused
on delivering more predictable outcomes through applications of
virtual design & construction, prefabrication, its team of
self-perform craft, and leveraging data to learn and improve from
DPR consistently ranks among the top building contractors and
employs approximately 11,000 professionals across its family of
companies. For more information, visit http://www.dpr.com.
For more information, please
contact:
Lisa Ruano
DPR Construction
Tel: 908-451-9622
Email: lisaru@dpr.com
View original content to download
multimedia:https://www.prnewswire.com/news-releases/flexibility-key-to-mitigate-supply-chain-delays-in-data-center-construction-302185273.html
SOURCE DPR Construction