How The Last Mile Affects Profitability of Construction Projects

Traditionally, missing or incorrect construction materials cause delays in construction projects. Materials needed are underestimated – leading to parts being needed urgently.

Normally, a worker is dispatched to the supply house for missing or incorrect parts. Usually, this is a well-paid or badly-needed, skilled worker. This results in productivity wasted as the needed worker completes the simple task of picking up the missing material.

Finally, and importantly, is the cost of the labor performing this task. The average construction worker earns $25-$75 an hour. Losing a valuable employee just to get missing or incorrect parts not only slows down the project but costs more.

It is easy to see why the last mile is important to the economics of construction. Initially, plans are drawn, specs are submitted, and parts are ordered. The reality on the job site rarely paints that perfect picture.

Whether it’s the manufacturer, the distributor, supplier, contractor, or just human error, things don’t always go as planned. There will always be a need for last-minute deliveries to your job site. The faster and more economically you can acquire those parts when needed, the more time and money can be saved.