After a turbulent year of adjusting forecasts and changing expectations, 2021 will be a year of reemergence and growth in the construction industry. This year, the COVID-19 pandemic changed how the construction industry does business, from scheduling and closing projects to hiring workers to meeting with clients. Looking forward, many industry trends will be affected by the fallout from the pandemic. Trey Jones Austin shares that, new technology continues to change the construction site, improve the ability to win projects, and increase profit margins. Trends and movements are changing the roles of industry professionals and frontline workers.
As the industry becomes more competitive and the market shifts, harnessing these construction trends will prove valuable for any construction firm. Read on for the 10 must-watch construction industry trends for 2021 to help you stay competitive.
1. Protective Equipment
The industry is also witnessing a rise of machines capable of identifying common safety issues and eliminating those threats one at a time. Wearable innovations are making their way to the job site with work boots that connect to Wi-Fi and alert others if a person has fallen. Material moving “mules” transport heavy or hazardous materials, and tasked robots construct scaffolding or lay bricks autonomously.
2. Efficient Technology
The biggest differentiator for builders and developers this year is likely to be technology in construction. Experts see blockchain technology— it’s a powerful component in providing a more secure and fast-moving workflow that allows all involved parties access to improved productivity.
Construction Drones
The technology offers far more uses than just aerial photography for real estate and commercial efforts. Today’s drones are used for rapidly mapping large areas over long distances, producing valuable aerial heat maps and thermal images. More advanced future uses include monitoring equipment depreciation and incorporating AI to organize moving construction equipment.
Augmented Reality (AR)
For builders and developers, AR facilitates the use of wearable technology and 360-degree video to enable:
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3D visualization of future projects on their surrounding environment
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Automated measuring of buildings
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Fast and affordable simulation of architectural and structural changes
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Safety training and hazard simulations
3. Growing Need for Laborers
One of the most noticeable construction trends of the past few years is a vast increase in the demand for labor. Quality labor is expensive and competitive, though robots do pick up a lot of the slack. Trey Jones Austin expressed that, COVID-19 pandemic caused a shift in attitudes toward alternative education options and resulted in increased positive attitudes toward trade school, positioning construction firms to show off the career growth potential in their industry and the abundant opportunities to experiment with new technologies.
4. Remote Worksites and Mobile Access
Mobile applications in the construction industry allow worksite access like never before possible, including real-time inspections, on-site accountability, and accurate measurements taken from a mobile phone camera.Other mobile apps in the marketplace include measuring assistant Air Measure and asset management software Infotycoon. Those without complete mobile connectivity will be at a productivity and sales disadvantage going forward.
5. Rising Material Costs
The Producer Price Index for construction goods rose 5 percent over the three-year period ending in November 2020, per the Association of General Contractors. Rising interest rates are likely to compound all types of costs, resulting in further pressure on total construction. Technologies like drones, AR, and BIM will prove key to helping to maintain project volume and combat this cost pressure.
6. Green Building
Green construction is the expected standard for homebuyers, renters, and commercial tenants. Unfortunately, many sustainable and eco-friendly features remain a luxury, despite their long-term savings — though this will change over the next decade as ecotech and
sustainable construction become more mainstream.
7. Modular and Offsite Construction
Modular and prefab construction is in the middle of a multi-year boom that isn’t showing signs of slowing down. The modular construction market, led by the residential sector, is predicted to balloon in value to almost $110 billion by 2025, driven by a lack of skilled labor and an increase in cost-cutting technology.
8. Construction Management Software
Comprehensive construction management software is a vital tool for remaining competitive, building a valuable business, and mastering operational efficiency.
Choosing the right construction management software is important for your firm. Begin with looking at ease of use and integration with other existing software. Look for scalable software that fits right now, yet will help manage your needs as those needs multiply. Evaluate customization options, upgrades, and additional features, and check for availability of support and training to get up-and-running.
9. Focusing on Residential Projects
As global investment from tech companies increases in complex megaprojects like smart cities, some of the largest construction companies, like Skanska, announced that they’re no longer pursuing large transportation public-private projects, instead focusing on lower-risk arrangements.
The large-scale project downturn is already resulting in increased interest in private sector projects. Residential construction spending in the private sector alone is up nearly 7 percent in 2020, and privately-owned housing starts clocked a 12.8 percent year-over-year growth in November 2020.
10. Smart Cities
Some of the biggest tech companies in the world, like IBM, Microsoft, and Cisco, are investing heavily in megaprojects to build smart, sustainable cities. These cities are more intricate and interconnected than most megaprojects and require intense planning and development prior to commencement. Global spending on intelligent infrastructure development topped $120 billion in 2020 and is expected to sharply increase.
As per Trey Jones Austin, these construction industry trends are rapidly changing the global market; rising prices, and skilled labor shortages are likely to continue in the coming decade, and regulatory challenges may become stricter with intense scrutiny on workplace safety and climate change adaptation. By adopting new practices, leveraging new technologies, and investing in new projects, builders and developers can reduce risk, win more contracts, and enjoy profitability.
2020 was an anomaly for statistics in the construction industry, but looking forward, the outlook is largely positive. After a tepid year, an upswing in construction is expected throughout 2021 as the US economy recovers from the pandemic and new economic centers continue to develop and grow.
As your firm strives for greater efficiency and safety, keep up with demand by using a reliable rental equipment network with BigRentz.