The rise of technology and the growing demand for ecommerce are helping fuel the growth of the construction industry. However, recent client preferences like green buildings will change the future landscape. Thus, if you are a construction professional, it’s better to keep up with construction industry statistics and goings-on.
In this article, we will help you create a good picture of the current state of the industry in the world and the US. Also, we will cover outlooks like technology adoption, the rise of green construction, and the future state of the industry.
Globalization allows Western companies to reach emerging markets and developing countries. This entails the construction of brick-and-mortar locations. Furthermore, emerging markets continue to produce entrepreneurs and are conducive to bigger firms. Thus, experts predict growth in the construction industry will continue.
of respondents stated skilled labor shortages had a major impact on construction delivery
of respondents said labor disputes had fair or little impact on construction delivery
of respondents stated that lack of confidence had medium impact on construction delivery
Source: Turner and Townsend 2018Designed by
Global construction industry data indicates a respectable steady growth. Some regions witness upward movement while others show signs of slowing down. There are indeed some challenges. However, countries and cities will always need infrastructures to support development, services, social activities, and their economies. Building repairs and improvements will always be around. Thus, the construction industry will always remain.
However, construction professionals should keep up with the shifts in paradigms–the mindsets and technology that comes with it. These and other external market forces would shape the future of the industry in the years to come.
The current US construction industry research indicates that it will experience a growth nearing the boom from 2005 to 2007. Nonresidential transportation and office spaces are leading sectors.
US commercial establishments are transitioning their primarily brick-and-mortar operations into a hybrid one accommodating eCommerce. Thus, constructions are being done to provide infrastructural support to storage and transportation.
Furthermore, retail construction would likely see a change especially when eCommerce is now accounting for significant retail market shares. Thus, retail building designs may undergo some change. Companies may require smaller spaces.
Moreover, other movements such as remote work and the gigs economy may affect the US construction industry more. Therefore, you must keep yourself updated.
The US economy hasn’t bounced back yet from the most recent recession. The construction industry is still in need of many jobs. Here are relevant statistics from our construction industry market research about employment.
Firstline supervisors of construction trades & extraction workers
Source: Data USADesigned by
Currently, the construction industry is experiencing some aftershocks of the current recession. It remains one of those industries experiencing worker shortages. Moreover, this may be caused by public policies like the tightening of immigration.
Historically, the construction industry has been employing immigrants. Thus, with tighter regulations, it lost potential workforce candidates.
HR is a key issue here. Therefore, it is better that you keep yourself up to speed with recruitment statistics. This helps inform you of how hiring, in general, is happening in the country and the world.
The construction industry has been widely panned for non-environmental-friendly practices. However, many contractors are taking the initiative to reduce impact through their practices and materials. Here are some statistics in relation to green buildings and technology.
In business, it doesn’t really matter much if you believe whether we are experiencing human-caused climate change or not. What matters is that people believe and government bodies also believe. Thus, policies are getting made to help decrease CO2 emissions and other harmful environmental practices (however they are measured). Therefore, there is and will be a market for going green.
If the leadership in your company believes climate change proponents, you’ll have an easier transition. Of course, you can only incorporate green building services and not really execute a full pivot. Also, you can even fully specialize but green building requires high specialization. Thus, a good deal of research and investment is needed here.
As mentioned, the construction industry seems to be lagging when it comes to technology adoption. However, we can expect the industry to catch up in the next five years.
of professionals plan to buy or upgrade their software in the next 12 months in the
are using drones
are using autonomous equipment
are using AR/VR technology
Source: Software Connect 2017–2018Designed by
Some argue that the productivity of the construction industry is not that bad. It is claimed that it’s a matter of how you measure it. However, most construction professionals are not really interested in measurement debates. The pragmatic thing to do is take everything on a case to case basis where every firm is a special case for measuring productivity. Also, this is what matters for individual construction workers and contractors. Thus, they must actively track, monitor, maintain, and improve their very own productivity.
To wit, professionals can take full advantage of construction management software to easily do this.
In this regard, we highly recommend CoConstruct which is a web-based custom builder and remodeler software. It can help in the day-to-day operations of builders like budgeting, communications, scheduling, and planning. Everything you do will be under one roof that is easily accessible and easy to use.
As mentioned, the future of the construction industry seems to be bright and very exciting. Robotics and AI are poised to enter the fold. Thus, optimists may state that this will help in the current workforce issues. Whether this will happen or not, we’ll find out.
We should expect the future of the construction industry to be very exciting. On the design and materials front, new innovations can help decrease costs such as self-healing roads and structures. Also, on the construction automation side, we should expect robots to make a grander entrance into construction projects. Of course, they’d likely start out with easier ones and maybe scale up to provide assistance for more complex structures like high-rise buildings and underwater repairs.
Moreover, for the productivity side, we should expect construction companies big and small to adopt modern productivity technologies like project management solutions. These would help smoothen out business processes that support construction proper.
Experts believe that the construction industry will be a hotbed for dramatic shifts in the future. Construction industry data suggests that some conventional structures and practices may be phased out and new ones would come to take over. This may not happen fairly quickly though. However, many technological advances from many fronts are going to affect how construction professionals do their jobs. Robots may eat up some workforce share in five to ten years. But, there is still a strong demand for good people.
Remember, most CEOs and ministers at the World Economic Forum have set recruitment and development as their highest priority. Sure, the jobs may be different in the future like less manual labor but good human-based decisions, instincts, and soft skills are still needed. Furthermore, with the current focus on climate change and how to decrease carbon emissions, professionals from other disciplines are needed to come to the fold.
More environmental scientists and engineers would later find their way to the construction industry. Also, community development professionals are likely to join the fold as well. Thus, you should also keep up with news, technological development and projections about the HR industry to stay competitive.
Finally, the shift, as alluded to, is not so much on the number of construction demand in whatever sector. We all know that this will rise and fall due to building decays and the need for improvements wane and rise as well. However, the main shift that’s going to happen is likely with mindsets and technology. Thus, it’s best to keep up with construction industry market research and news from time to time.
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