Will 2023 be all about lead times?

The last couple of years have been a mixed bag for our industry. Sure, business has been very good for most, but inflation and supply-chain issues have made it a real challenge for project managers looking to meet contractual terms for cost and delivery schedules. The year ahead does not seem to be shaping up to be much different, and perhaps there’s a new factor that will further complicate things.

Production lead times for new equipment are at all-time highs. Everything from large engine-generators, to simple items like specialty valves, PLCs, and even resistor coils found in test load banks. Lead times are, in some cases, long enough that new orders are already being scheduled for delivery well into 1Q2024! With shipments projected out that far, there are real implications for delayed company revenue, project financing, and, of course, construction schedules.

A look at macroeconomic surveys shows plenty of ambivalence as to whether we are to expect a recession, a “soft landing”, or nothing special at all in 2023. You may hear some talk about a recession in the later half of the year, while others worry that interest rates are not high-enough to dampen inflation and the still-hot consumer demand.

What to do with all this uncertainty? Well, if you can’t control the big wheels of the economy, I say look to niche sectors within your field of expertise that can help you push ahead. Look for business that can be converted to revenue quickly. In the emergency generator industry, examples of quick-turning business might be found in the services sector. Services such as load bank testing, engine cooling and exhaust system refurbishing, engine-starting systems, fuel polishing services, etc. If you are lucky enough to have a solid inventory of emergency generators, you may need a matching quick-supply for ancillary items such as transfer switches, exhaust silencers, day tanks, battery chargers, etc. In spite of market conditions, there are supply options that may help you source what you need to complete a quick delivery for an important customer.

Hurtado.cc offers many ancillary components to complete an emergency generator installation. Whether electrical components, such as battery chargers and load banks, to mechanical accessories such as exhaust thimbles or silencers, Hurtado.cc can find quick delivery options for you. If you would like to discuss a specific project with sensitive delivery requirements, please reach out to my office. I will work with you to locate the products that you need, for delivery when you need them!

Wishing you a healthy and successful 2023!

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