After a particularly slow year, the residential & commercial construction industry is definitely looking up. Whether you are a one-person army or the owner of a major construction firm, it is a good time to be in construction.
While many on-site projects were prematurely halted due to coronavirus’ onslaught in 2020, a few builders adapted quickly as soon as the restrictions were lifted, relying on project management tools and ConTech to speed up processes and enhance the safety of workers.
The adoption of such technologies has essentially changed the way top companies build and manage long- and short-term projects. Numerous construction summits and events, such as the Realty 2.0 Conference, will invariably focus on these shifts and study how these will impact the global construction market and jobs creation in the years to come.
That said, significant roadblocks lie ahead in the paths of builders, architects, and contractors. Through this blog, we will underline some of the challenges that continue to impact the growth of the construction industry:
The labor shortage problem in construction is not a new one. In dire need of promising, young blood and with an aging workforce, major construction firms must boost their recruiting efforts, tie-up with trade schools, aggressively implement training programs and offer incentives to ramp up productivity and business growth.
With new building practices, more competition, the introduction of sustainable materials, and increasing involvement of clients, construction projects are becoming more complicated and challenging. To succeed, firms require people with a new set of skills and industry know-how. Hiring the right workers has now become more important than ever to ensure client satisfaction and quality.
The need of the hour is to make construction apprenticeship seem like an attractive career option to the younger generation. By enhancing work culture, offering better remuneration, improving diversity, and boosting safety efforts, construction firms can tackle the growing issue of labor shortage in the coming years.
The boom in the housing market has led to a steep increase in the cost of construction materials, which inevitably translates into lesser profits and increased building prices. In addition to this, it is important to note that lumbar prices are increasing as we speak. So, a contract drawn up in, say the month of February, will not actually reflect the actual cost incurred when a project sees completion in the coming months.
But supply hindrances go way beyond this. Many contractors still find it difficult to source supplies as many mills are yet to operate at 100% capacity. This has led many builders to include price escalation clauses in their contracts. Experts predict that the historically-high prices will go down by the end of 2022.
The construction industry is among the least digitalized industries in the world. While major firms have been quick to adopt digital tools during the pandemic, smaller companies have been slow at embracing this change.
Experts continue to stress the cruciality of this subject as the implementation of new technologies can radically improve productivity, communication, and employee satisfaction levels.
But that’s not all. The adoption of ConTech will also lead to safer working conditions, better hiring practices, and more waste-free use of building materials.
In fact, most of the emerging technologies can prove to be effective solutions to huge industry issues. For instance, wearables can be incrementally helpful in assessing the health of workers and robots can be deployed for physically strenuous, time-consuming tasks.
For solutions to emerging industry obstacles in a market that’s witnessing a massive transformation, attend the Realty 2.0 Conference in 2022. To be held in Las Vegas, USA, and Dubai, UAE, the global real estate and construction event will outline major trends and advancements that industry professionals should keep an eye on to propel their business forward.