Q1 2022 Update
Midway through Q1 2022, at Architectural Fabrication we continue to see a very robust market and we’re grateful for the partnerships that were forged and strengthened in the crucible that was 2021. While industry and economic projections reflect uncertainty, in this update we will share where we are, what we have done to strengthen our value, and what we can do together going forward to ensure our mutual success.
Where We Are
We’ve begun to see pricing and lead times stabilize. We work closely with our vendors to monitor current conditions and our leadership team is strategically planning and communicating to key internal and external stakeholders.
Here is a link to an informative Market Update provided by vendor partner MBCI and Cornerstone:
What We Have Done
In Q4 21, we implemented a new estimating system, utilizing timely cost data and delivering the most accurate pricing.
Our Product Improvement Team created significant enhancements to various products including our Helios and Atlas canopy systems. These changes allow us to maintain competitive pricing, shorten lead times, and improve product performance.
What We Can Do
At Arch-Fab, we have historically locked in our pricing at the time of award; however, we do not place orders for materials until after we have executed contracts and approved submittals. In most cases, our price is not guaranteed until our material orders ship from our suppliers. This creates a significant gap in timeline for prices to escalate.
In order to maintain this practice going forward, we are emphasizing the need to:
- Get contracts executed as quickly as possible
- Receive approved submittals and color selections within 30 days of contract execution
- Submit pay applications for stored materials with timely processing and payment
- Have greater cooperation between our teams (i.e. onsite storage, reduced mobilizations to, etc.) to ensure mutual project success and maximize onsite efficiency
With your support in maintaining these important timelines, we will ensure our ability to profitably and successfully perform.
Architectural Fabrication is poised for continued growth and service to you in 2022. If you have any suggestions or questions, please feel free to contact a member of our Preconstruction team at (817) 926-7270.