2021 brought a lot of obstacles for the construction industry. The rise of construction costs, labor shortages, and the COVID-19 pandemic has changed how our industry does business. Many industry trends continue to emerge from the pandemic and are changing the roles of industry professionals and frontline workers.
Here are 5 major construction industry trends to look for in 2022:
Shortage of Laborers
One very noticeable construction trend is a steady increase in the demand for labor. Quality labor is expensive and competitive. According to the U.S. Bureau of Labor Statistics, between 2021-2022, the construction sector is projected to grow 2.6 percent. This equates to 1.6 million new jobs. An influx of educated and seasoned workers will be needed to manage and interpret the data produced by new technology.
Modular and Offsite Construction
Modular and prefab construction is experiencing multiyear rapid growth, and it is not slowing down. The modular construction market, led by the residential sector, is predicted to increase to almost $110 billion by 2025. This uptick is driven by a lack of skilled labor and an increase in cost-cutting technology.
Increasing Material Costs
The U.S. Bureau of Labor Statistics reported that the Producer Price Index for construction goods increased by 17% year over year in 2021. Rising interest rates are likely to compound all types of costs, which will result in further pressure on total construction costs. Technologies like drones will be in key in helping to maintain project volume and combat this cost pressure.
With more and more people looking for ways to protect the environment, green construction has become the standard for homebuyers, renters and commercial tenants. Unfortunately, many sustainable and eco-friendly features remain out of reach despite their long-term saving opportunities. This may change over the next decade as eco-tech and sustainable construction become more acceptable and affordable.
The COVID-19 pandemic drastically impacted the construction industry by affecting site guidelines with updated state regulations emphasizing cleanliness and strict safety protocols. There is a growth of new devices capable of identifying common safety issues. Some examples of this new technology include material-moving “mules” that transport heavy or hazardous materials and robots that could complete mundane tasks like brick laying to larger more complex tasks.
These are just a few of the construction industry trends for 2022, there are many more to be on the look out for. Visit the Hugg & Hall website to find out how we can help you stay on trend in 2022!