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The construction industry continues to feel the strain of ongoing supply chain disruptions, ABC said in a letter to the U.S. House Committee on Small Business Subcommittee on Oversight, Investigations and Regulations, which held a hearing on global supply chains and small business trade challenges on Oct. 10.

Citing its construction economic data and trends analysis, ABC said ongoing supply chain disruptions have resulted in persistent volatility of input prices, diminished contractor confidence and backlog challenges for small contractors.

“The fluctuation in construction input prices caused by supply chain disruptions has made it very difficult for businesses in the industry to predict budgets and bid work. As a result, many contractors, including small businesses, face additional cuts on profit margins. According to ABC’s Construction Confidence Index, contractors’ profit margin expectations have worsened in recent months. Readings for sales, profit margins and staffing levels each declined in September, but remain above the threshold of 50, indicating expectations of growth over the next six months. Additionally, contractor confidence still remains well below the October 2019 reading,” ABC wrote.

ABC also urged Congress to not place additional burdens on small businesses by passing the ABC- opposed Protecting the Right to Organize Act and  proposed tax increases in the partisan budget reconciliation bill.

“Congress should steer away from policies such as the Protecting the Right to Organize Act, which would limit opportunities for small businesses to compete and recover from the pandemic. Although the PRO Act has passed in the House of Representatives, it has yet to become law. The bill would enact harmful policy changes that would eliminate right-to-work protections in 27 states, violate employees’ privacy and upend the business community. ABC members urge Congress to reject this bill and its devastating policies,” ABC wrote.

ABC strongly urges its members to reach out to their members of Congress to voice their concerns with the partisan budget reconciliation package by using the ABC Action Center.