2021 continues to be a challenging year for business owners everywhere. We've seen some ups and downs, but one thing's for sure: we'll continue to forge ahead despite the challenges. We recently sat down with Brian Hess, president of The Pavement Group, and Leigh Kuhn, president of RynoWorx, to talk about what lies ahead for the asphalt maintenance industry in 2022.
Summary of Content
- Be prepared for everything you need to do.
- Inflation and price increases are on the horizon. Expect more instability in 2022.
- Recession can be opportunity.
- How to deal with labor shortages.
Timeline of this Webinar
- [2:00] Incredible demand in the asphalt industry.
- [4:40] Inflation in 2022.
- [11:55] Prepare for next year now rather than later.
- [13:53] Build your business network.
- [16:41] This is an opportunity.
- [23:05] Hiring and finding workers.
- [30:54] Conclusion.
There is Incredible Demand for Asphalt Maintenance But!
According to Brian Hess, this year saw a rise in demand for sealcoating and crack repair services. Property owners who are flush with cash and eager to ensure that their homes are maintained inside and out have been signing up for sealcoating and crack repair this spring and summer.
While the demand for asphalt maintenance and repair services has been incredible, the industry has been hampered by supply chain disruptions, inflation, labor shortages, and more.
The Challenges
The past months have been rough for manufacturers, suppliers, and consumers. Supermarket shelves empty of household goods have become a common sight, while manufacturers and consumers struggled with shortages of semiconductors, steel, and more.
It didn't take long before the effects of supply chain disruptions rippled to the asphalt maintenance industry. We've dealt with crack filler shortage this year, and at the time of writing, line marking paint is still scarce in many areas.
And if supply chain disruptions are not enough, we also have to deal with inflation. The bad news? Prices will definitely rise in 2022 and no one knows when it will stabilize.
The Bright Spot
Despite these challenges, there is always a silver lining. Here are some of the things you can do to soften the effects of the crises on your sealcoating business and how you can thrive despite supply chain disruptions and inflation.
Get equipment and supplies as soon as you can
If you need something to get the job done and you don’t have it, then that’s going to be a problem, says Leigh Kuhn, president of RynoWorx. So what is the solution?
Take stock of the critical supplies and equipment that you can’t do without and make a plan to get those in advance.
Is there crack filling equipment or asphalt sealer you need for next year? Then now is the best time to purchase them before the prices inevitably rise in 2022.
As supply chain issues are not expected to get better any time soon, we recommend that you buy crack filling and asphalt sealer in bulk now to get ready for the 2022 season.
Short on cash? Try equipment financing
The things we mentioned above are only doable if you have cash on hand. But what if you're not?
There are several options you can explore to fund equipment and supplies. You can use your credit card to purchase supplies or apply for a loan at banks or other traditional financial institutions.
But if you're unable to meet qualifications for traditional loans, then check out Clicklease. Asphalt Kingdom has partnered with Clicklease to make it easier for business owners like you to get the equipment and supplies you need for your business.
Follow up on the proposals you've sent out
Did you send out hundreds, if not thousands, of proposals in the past few months? Another way to boost your profits is to follow up on all those proposals to see if your leads are now interested in your services. According to Brian Hess, this is a great opportunity to make the most out of the rest of the year.
Be better at social media, networking, and branding
Stop focusing on shortages and other problems because they're not going away any time soon. Instead, focus on what you can do to build and boost your business. Improve your social media game and boost your online presence. Be better at networking, and learn how you can strengthen your brand.
Tap into your network
Having difficulties sourcing supplies? Can’t find a cheaper crack filling machine or line striper? Then tap into your network and see if they have leads.
Shift your mindset and embrace transitions
We all dread the words "crisis," "inflation," and "recession." But these are the facts of life and they are inescapable. The best we can do, according to Leigh Kuhn, is to shift our mindset and consider these phases as transitions. Painful as they are, these transitions should be embraced as they often bring positive changes and fantastic opportunities.
Related: Invest in Professional Turnkey Pavement Sealcoat Sprayers
Dealing with the labor shortage
The labor shortage is another issue hounding the asphalt maintenance sector right now. There are many reasons why it has become harder to find workers right now and finding the right people will continue to be a challenge in 2022. But there are things you can do to offset the effects of labor shortage.
One of the things you can do to minimize its effects is to maximize the use of asphalt maintenance equipment to boost your efficiency.
Be aggressive when it comes to hiring, says Leigh Kuhn of RynoWorx. Be prepared to give applicants answers quickly so you can expedite the hiring process and get the ball rolling.
Conclusion
2022 is going to present a lot of opportunities and challenges, but you can be ready for it. Stock up on much-needed sealcoating and crack repair supplies and equipment now before prices go up.
Reach out to our customer service representatives at 1-866-399-5562 on how to get the best deals and save money.
