We are seeing the same inflationary increases in our operating costs that all of us see in our normal everyday lives. The costs of basic items, from fuel to equipment to labor, increase.
It pervades all aspects of our working and personal lives. And it hasn’t changed.
Fuel prices remain stubbornly near their recent highs, particularly diesel, which powers most of our larger trucks and heavy equipment.
The equipment we use, whether it is excavators or sewer jet trucks, remains in short supply, with waiting lists for delivery once purchased. Even standard half-ton pickup trucks take months to be delivered once ordered and come at a higher cost. Specialty trucks and equipment all have their own schedule for availability and related costs.
Materials such as brass and steel are especially volatile. This affects specialty items such as valves, hydrants, and sewer grinder pumps, which are all essential for our business.
Also, labor and benefits are more expensive and competitive. Experienced, seasoned field employees are needed in all areas of construction and keeping them once trained is difficult. Benefits such as health insurance will continue to increase.
A new item for us over the past several years is the cost of cybersecurity insurance coverage. This insurance is necessary, like fire and liability insurance. The ability to thwart such cyber-attacks, and if compromised the expense to manage the risks of it. With so many cyber incidents around the Midwest, we have been warned to spend the necessary training and IT related defenses on it.
Thus, these examples show that our world of water and sanitary sewer service remains costly, and our efforts must continue to manage them in the best manner possible.
Jerry Greiner, President