A derecho, supply chain issues, rising costs and labor concerns – what do these all have in common? They’re the big reasons why Brookings-area construction companies have more concerns than usual to contend with during an already-busy summer.
“It’s been quite an influx. (There were) a lot of people with pretty severe damage and, while we were already busy, but it’s busier now than it’s ever been,” Grant Loeffelbein said. He’s one of the co-owners of Brookings Roofing and Rykhus Nelson Siding, Windows and Gutters. “I don’t think Brookings has seen a storm like this in a really long time. A lot of the damage has been people who have had their shingles and underlayment blown off the bare wood. Those are the ones we prioritized to get over there to make sure they didn’t have water coming into their house. It’s been busy as it’s ever been, that’s for sure.”
Loeffelbein’s experiences were also shared by others involved in repairs following the May 12 derecho that struck Brookings and the surrounding area.
“The derecho added an overwhelming amount of work to the system,” Tony Brower, who owns Brower Construction, said. “We have had to pass on numerous calls from the storm due to not being able to look at, bid, or complete the large volume of work in such a short period of time.”
“We were busy prior to the storm, and then after the storm, the project managers and I met outside Mills Construction in the parking lot because we didn’t have power for 36 hours, but we had cellphones, and we were taking calls from a lot of people,” Randy Hanson, Mills Construction owner and president, said. “So, we kind of did a triage of deciding who we could help and who was most critical and who we could temporarily work for (and) patch up, while materials came, and that’s how we handled that.”
Besides contending with a slew of repair projects, construction companies are also grappling with ongoing supply chain worries – worries that have existed since the COVID-19 pandemic emerged, and now further magnified by the May 12 derecho.
“It’s a weekly battle as far as just figuring what jobs we can get materials for,” Loeffelbein said. “It’s not easy on anybody (and) you don’t want to get upset with the supplier, either, because there’s only so much they can do. Is it an issue? It’s certainly an issue” but not to the point where they’ve had to stop work on a job.
“It’s just made life a little harder because back before COVID-19 hit, it was basically, if I got busy doing Rykhus Nelson stuff, and it was the day before I could call down and say, ‘I need this shingle, this color, tomorrow at 11,’ and they’d say, ‘OK,’” Loeffelbein said. “Now it’s a week ahead of time. ‘Hey, what shingles do you have because I’ve got this whole list of jobs and I’ve got a spreadsheet and probably half (or more) of them I’ve got ‘not stocked’ labeled by them.”
Brower told a similar tale. “The supply chain has definitely put some challenges on getting projects completed,” he said. “We have seen longer lead times for several items in the building process. Sometimes this ends up delaying projects or forcing customers to alter which products they choose in order to keep the project moving forward.”
“It definitely has affected our business for a year or more, especially steel delivery and steel manufacturing and the wood-based products that everybody has a hard time finding, and the pricing is so enormous,” Hanson concurred. “Our business is interesting – you can’t get the 30-day sort of guaranteed material prices anymore, (and) time of delivery (and) subcontractors are booked out. It’s been very difficult, these supply chain issues, both for our customers and for us to do our business. We have some good customer bases, and they all seem to be understanding, which is good.”
Material costs
Another wrinkle that construction outfits are dealing with – well, them and their customers – revolves around rising costs for materials needed to complete projects.

“That’s been a pretty major shock,” Loeffelbein said. “What we’ve had to do is tell customers, before we present the estimate, that we’ll do our best to get stuff ordered right away and stocked … that way they know what their price is.”
Loeffelbein noted that his suppliers are sometimes on allocation, which means they’re not always allowed to order material from the manufacturers themselves. He said that, depending on the timing, that can result in prices going up. Loeffelbein added that, generally speaking, price increases used to be mostly  annual in nature, but nowadays it can be up to several times year.
“I’m sure it’s been a shock to everybody, these increases. It’s been a shock to us, for sure,” he said. “We try our best to be proactive, so that when somebody signs up, we get the material there before any increases could hit.”
Mills Construction has faced similar headwinds with prices.
“Under the projects that we already had under contract, it’s very difficult to pass on the increased cost to the customer unless we had an escalation clause in the contract,” Hanson said. “Those didn’t used to be a thing, but now they are. So, we pretty much had to eat those cost increases on current projects that we have. On the new projects, your new pricing has to include the materials as they are now, so the price of building has gone up.”
Hanson did note something that could be a silver lining, though, depending on how it’s viewed. “We are seeing a stabilization in pricing in steel and wood commodities, but anything petroleum-based – which is your plastics, gas, diesel, etc. – that’s all going up,” he said.
“The rising costs of materials hasn’t affected our ability to do business, so much as it has affected consumers’ ability to afford construction projects,” Brower added. “The construction industry, for the most part, tends to be a bid-based system, which is made up of combined material and labor costs. As those costs go up, project costs continue to increase, which often has to be passed on to customers.”
Labor challenge
Speaking of the labor force, how it affects, or doesn’t affect, companies varies from firm to firm.
“Throughout the years, (labor’s) been somewhat of a challenge, but we’ve been pretty fortunate as of late,” Loeffelbein said. “We could probably use a couple more people to fill specific roles, but we’re pretty fortunate right now. We’ve got good-sized crews (gutter, siding/window and roofing) and I’m pretty happy with where we’re at right now.”
Brower noted that labor has been an issue for as long as he’s been in the profession. “The construction industry seems to continually face challenges finding enough labor force, as well as reliable and properly trained individuals,” he said. “After 26 years in the construction industry, I don’t think this is an issue that is going to change.”
Still, he added, “At this time, I have been fortunate to have maintained my staff through the derecho, but we are always looking for qualified individuals.”
Hanson said that Mills Construction has faced the issue as well. “The labor shortage directly affects the amount of work Mills Construction can currently do, it’s that simple,” he said. “We turn down jobs because we cannot get enough labor to do the work.
“(The labor shortage is) a multi-headed animal, and I serve on a lot of workforce development councils throughout the state,” Hanson continued. “There’s no easy answer here, but it’s a number of factors: there’s been a number of people who dropped out of the labor force when COVID-19 hit and all of the shutdowns occurred, and they haven’t gone back to work. There’s been a shortage of labor just in general, too.”
Hanson added that, “We’re trying everything we can to help get more employees.”
Stress concerns
All of this – the impact of the derecho, supply chain issues, rising costs and labor concerns – is likely enough to stress even the most prepared person or business. So, how do the construction companies and crews deal with it?
“We try to take every day as it comes while keeping in mind that you can do what you do. Just work as hard as we can for as long as we can and try not to get too stressed out,” Loeffelbein said. “That’s the hard part when there’s people you’re trying to get back to, but you also have to get work done and just trying to balance those two things.
“When it gets dark, it’s time to go home and try to let it go since there’s nothing you can really do in the dark, so try to enjoy yourself when you’re not working. Then, when it’s time to work, getting as much done as you can every day.”
Loeffelbein pointed to another positive as well. “It’s been a nice thing that people have been, for the most part, very understanding and really appreciative, and that helps combat stress, too.”
Hanson said his company has its employees’ backs. “At Mills Construction, we have a very robust feedback culture where people can share their frustration, they can talk to their coworkers and we have a help line they can call; we’re just really engaged with our people as they struggle through these trying times,” he said. “The other thing is, we take good care of our people. They don’t have to worry about whether they’re going to get a paycheck or if it’s going to be delayed. Our No. 1 priority at Mills Construction is to pay our employees weekly, on time and never miss a paycheck. That’s No. 1.
“We also have team meetings and with new hires we have an onboarding process with a lot of touchpoints, a lot of conversation. We really care about our people, and they know it. That helps them with their personal stress and the stress … all of us are under in this culture.”
Brower’s approach to handling stress is succinct: “As long as you enjoy what you are doing, it is just another day,” he said.
– Contact Mondell Keck at mkeck@brookingsregister.com.