School districts are facing unprecedented challenges as the COVID-19 pandemic reshaped the terrain of operation. Many school districts were forced during the pandemic to rethink their building improvement plans. With aged facilities being taken down, the very essence of improvement is undergoing re-evaluation.
As Tracy Richter, VP of planning services for HPM, points out, districts have had to reassess their portfolio size and facilities earmarked for construction projects. This restructuring is affecting both old and new projects, forcing districts to reprioritize their objectives. Key concerns that are obstructing districts' attempts to revamp buildings are:
- Supply chain issues
- Labor shortages
- Changing enrollment patterns
- Fluctuating funding sources
The Dual Challenges of Labor Shortages and Increased Costs
Construction Dive reports that the increased competition for school construction projects both before and after the pandemic has led to a rise in contracting service costs and wages. In a scenario where contractors are being compelled to increase wages to hire professionals, the increased costs inevitably spill over to the districts. Supply chain disruptions have added another layer of complexity, delaying school facility projects and exacerbating costs.
The Long Wait and Funding Hurdles
Delays in supply chain, as exemplified by the lengthy waits for air conditioning units in the Union City Board of Education for example, put significant stress on funding. This is particularly troublesome for districts that depend partially on funding from the Elementary and Secondary School Emergency Relief (ESSER) fund, with looming deadlines causing districts to reconsider projects. Consequently, the approach to executing these projects may need revising, with smaller phases becoming the more feasible option.
Striking a Balance Between Investment and Enrollment
The decision to pursue major facility investments is closely tied to enrollment. Post-pandemic, public school enrollment has declined, alongside falling birth rates, leading to a change in building requirements.
With decreased revenues tied to enrollment declines, districts may have to consider school consolidation and closures. Predicting future enrollment is becoming increasingly difficult, making long-term portfolio space management challenging.
Impact on Local Communities
Fluctuations in school building planning not only affect districts’ long-term strategies but also their relationships with the local community. Trust can be built or eroded depending on the commitment to both large-scale and small-scale projects. Even minor projects, such as window replacements or air conditioning installations, can foster trust within communities. Conversely, failure to deliver on larger projects can damage stakeholder relationships, especially if they were backed by voter-approved bonds.
Navigating Supply Chain Disruptions
The pandemic has thrown the concept of supply chains into sharp relief, with ongoing disruptions posing significant challenges. Initially, the scramble to secure personal protective equipment (PPE) and facility maintenance supplies revealed the fragility of having a single supplier. The crisis underscored the importance of having access to a large, diverse pool of suppliers and manufacturers, especially during high demand periods.
Lessons Learned and the Way Forward
One major takeaway from this pandemic and the resulting supply chain crisis is the need to connect the parts supply chain with the education facilities management strategy. Traditional procurement infrastructures have proven insufficient in terms of resilience and agility. Going forward, districts will need to reassess their reliance on a legacy supply base while navigating the ongoing supply chain crisis.
Despite these trials, the industry remains focused on the bigger picture. Challenges are met with adaptability and resilience, with an emphasis on the overall enhancement of educational facilities.
