Literature review on key supply chain issues facing Building Contructions SMEs in developing nations during the covid pandemic

WRITTEN ASSIGNMENT        20
WRITTEN ASSIGNMENT
Table of contents
Literature Review    3
Introduction    3
Overview of the Problem    3
Supply Chain Disruptions    5
Labor Shortages    7
Financial Constraints    8
Price Volatility    10
Uncertainty and Risk    12
Impact of Government Policies and Regulations on Building Construction SMEs in Developing Nations    14
Future scope and recommendations    16
Conclusion    17
References    20
Literature Review
Introduction
    The Covid-19 pandemic has disrupted global supply chains, causing significant challenges for businesses across various sectors. This literature review examines the key supply chain issues facing Building Construction SMEs in developing nations during the COVID pandemic, with a specific focus on labor shortages, financial constraints, price volatility, uncertainty, and risk. The review also analyzes the impact of government policies and regulations on the growth and sustainability of Building Construction SMEs in developing nations. The review highlights the challenges and opportunities facing SMEs in the construction industry, and provides recommendations for policymakers and practitioners to support the growth and sustainability of these businesses. Overall, the review emphasizes the importance of creating a supportive environment for SMEs in the construction industry to foster economic growth and job creation in developing nations.
Overview of the Problem
Small and medium-sized enterprises (SMEs) in the building construction sector in developing nations have been particularly affected by the pandemic's impact on supply chains. SMEs in this sector face several supply chain issues, such as supply chain disruptions, labor shortages, financial constraints, price volatility, and uncertainty and risk. Supply chain disruptions have been a significant challenge for Building Construction SMEs in developing nations during the Covid pandemic. SMEs in this sector rely heavily on imports and face difficulties in obtaining materials and equipment due to transportation restrictions and border closures. The impact of supply chain disruptions on SMEs in the building construction sector has been significant, leading to delays in project timelines and cost overruns. Another significant issue faced by Building Construction SMEs in developing nations during the Covid pandemic is labor shortages. Restrictions on movement and social distancing measures have made it challenging to recruit and retain skilled workers. Building construction SMEs have faced difficulties in completing projects on time due to labor shortages, leading to financial losses and reputational damage.
    Building Construction SMEs in developing nations have also faced financial constraints during the Covid pandemic. Many SMEs have limited financial reserves and have been unable to access credit due to the economic slowdown caused by the pandemic. SMEs have faced difficulties in meeting their financial obligations, such as paying suppliers and meeting payroll obligations, leading to cash flow problems. Price volatility has been another significant issue faced by Building Construction SMEs in developing nations during the Covid pandemic. The pandemic has led to fluctuations in the cost of raw materials and equipment. Building construction SMEs in developing nations have been particularly affected by price volatility, as they have limited bargaining power and are often at the mercy of suppliers. Price volatility has made it challenging for SMEs to manage project costs and has led to increased project risks.
    The Covid pandemic has created a high degree of uncertainty and risk in the building construction sector. Building Construction SMEs in developing nations face uncertainty regarding the duration of the pandemic and the extent of the economic damage it will cause. SMEs are also exposed to risks associated with project delays, labor shortages, supply chain disruptions, and financial constraints. The uncertainty and risk associated with the pandemic have made it challenging for SMEs to plan and execute projects effectively. To address these challenges, Building Construction SMEs in developing nations must adopt innovative solutions to enhance their supply chain resilience and agility. Digitalization and automation can help SMEs reduce their reliance on manual processes and enhance their supply chain visibility. SMEs must also develop robust risk management strategies to mitigate the impact of supply chain disruptions and uncertainty. Building Construction SMEs in developing nations must work together with suppliers, customers, and other stakeholders to develop collaborative solutions to address the supply chain issues caused by the Covid pandemic.
Supply Chain Disruptions
    Supply chain disruptions have been one of the significant challenges faced by Building Construction SMEs in developing nations during the Covid pandemic. SMEs in this sector rely heavily on imports, and Covid-19 has caused significant disruptions in global supply chains, making it challenging to obtain materials and equipment. This disruption has led to delays in project timelines and cost overruns, significantly impacting SMEs' financial performance and reputation. One of the reasons for the supply chain disruptions is the restrictions on movement and transportation caused by the Covid pandemic. Countries have imposed travel bans, lockdowns, and quarantine measures, making it challenging to move goods across borders (Demirel & Keskin, 2021). This has led to delays in the transportation of goods, affecting the entire supply chain. Another factor contributing to the supply chain disruptions is the closure of manufacturing facilities. Many manufacturers had to shut down their facilities due to the pandemic's impact, leading to a reduction in production capacity. This has resulted in a shortage of raw materials and equipment, causing significant disruptions in the supply chain. Sudden surge in demand due to shortage of building essentials has caused supply chain disruptions, leading to shortages of these essential goods. The increased demand for goods has also resulted in a rise in prices, further affecting SMEs' financial performance.
    In response to these challenges, Building Construction SMEs in developing nations must enhance their supply chain resilience and agility. One way to do this is by diversifying their supplier base. SMEs must work with multiple suppliers to reduce their reliance on a single supplier. This strategy can help SMEs reduce their vulnerability to supply chain disruptions caused by a particular supplier's closure or production slowdown. Another way to enhance supply chain resilience is by developing contingency plans. SMEs must prepare for potential disruptions by identifying potential risks and developing strategies to mitigate their impact. For instance, SMEs can identify alternative sources of materials and equipment, develop backup plans for transportation, and establish communication channels with suppliers to ensure a quick response to potential disruptions. Furthermore, developing countries should be self-dependent, when it comes to manufacturing of construction building supplies.
    Digitalization and automation can also enhance supply chain resilience and agility. SMEs can use digital technologies to track their inventory, monitor suppliers' performance, and manage transportation (Kachienga, Tindiwensi & Musonda, 2020). These technologies can help SMEs identify potential supply chain disruptions and take proactive measures to mitigate their impact. Building Construction SMEs in developing nations must also collaborate with suppliers, customers, and other stakeholders to develop solutions to address the supply chain disruptions caused by the Covid pandemic. Collaboration can help SMEs obtain essential goods and services, share resources, and develop contingency plans. SMEs can work with their suppliers to identify potential supply chain disruptions, develop risk management strategies, and implement contingency plans to mitigate their impact. In conclusion, supply chain disruptions have been a significant challenge for Building Construction SMEs in developing nations during the Covid pandemic. SMEs in this sector must enhance their supply chain resilience and agility by diversifying their supplier base, developing contingency plans, and using digital technologies. Collaboration with suppliers, customers, and other stakeholders can also help SMEs address the supply chain disruptions caused by the Covid pandemic. Building Construction SMEs in developing nations must take proactive measures to mitigate the impact of supply chain disruptions to ensure their financial performance and reputation are not significantly affected.
Labor Shortages
    In addition to supply chain disruptions, labor shortages have been another significant challenge faced by Building Construction SMEs in developing nations during the Covid-19 pandemic. The pandemic has resulted in a reduced workforce, with workers falling ill, being quarantined, or unable to travel to worksites due to restrictions (Ogaji, Asubiojo, & Ojeka, 2021). The restrictions on movement and transportation have also made it challenging to recruit and retain workers, further exacerbating the labor shortage (Mendonça et al., 2021). The labor shortage has led to project delays, cost overruns, and reputational damage for Building Construction SMEs in developing nations (Guan, Cheng, & Luo, 2021). SMEs have struggled to find workers with the necessary skills and experience, leading to a decline in the quality of work and reduced productivity (Ogaji et al., 2021). The labor shortage has also resulted in an increase in wages, further impacting SMEs' financial performance. Pandemic left many homeless and therefore forcing the labour to move to their hometowns.
    To address the labor shortage, Building Construction SMEs in developing nations must adopt innovative strategies to attract and retain workers. One such strategy is to develop partnerships with training institutions and organizations to offer training and apprenticeships (Guan et al., 2021). This approach can help SMEs develop a pipeline of skilled workers, reduce recruitment costs, and enhance the quality of work. Another strategy is to implement flexible work arrangements such as providing the workers with shelter and food so that they continue to work even in difficult times (Mendonça et al., 2021). Flexible work arrangements can also help SMEs reduce their reliance on a single location, making them less vulnerable to future disruptions.
    Building Construction SMEs in developing nations can also enhance their use of technology to address the labor shortage. The use of robotics, drones, and other automated technologies can reduce the need for labor-intensive tasks, enhance efficiency and productivity, and reduce the risk of workers contracting Covid-19 (Ogaji et al., 2021). This...