Last year, the industry had its drawbacks and cutbacks but nevertheless, construction industry continues to rank among the highest in terms of economy diversification. Focusing on the year just ended, it is evident enough that the industry had some major challenges but all that is now gone. It was predicted that this year alone would see the construction industry sector rising by 6 percent which is significant to the country’s economy.
Construction industry in the country is still on the verge of rising and analysts earlier had their prediction in the outcomes of this year’s performance of the industry. Major economic influences that led to a high prediction in the construction value in the 2016 alone included factors such as the rise in new technology, the workforce concerns and the homebuyer’s preferences. All in one are expected to greatly influence the construction industry.
Construction building overview from the previous year
Experts in the construction field agree that in 2016 and 2017, the construction industry will rise significantly compared to what was witnessed in the previous year. Construction building had been on the rise in 2015 and this trend has continued to prevail in most of the U.S states. Commercial, single and multi-family housing are still registering decent percentage growth rate this year.
“The economy continues and will continue to be led by the consumer spending growth” Anirban Basu. This shows that the expected trend will continue to be on the rise as the consumer spending growth rate still increases.
The labor market improvement in relation to construction industry development
One of the key drivers in development of the construction industry is the labor. The labor market contributes greatly to the development of the construction industry. As it is today, a lot of young adults continue to flock the city states and improving their welfare in terms of remuneration and addition of new jobs in the market improves to a greater extent the housing market since most of them will be looking to form their own household. This in turns translates to growth in the construction industry.
However, during the recession period, a lot of young people were laid down bringing the construction industry down significantly.
Construction companies rejected the entrance of new younger employees in the field and now this is causing a problematic situation in the labor market today.
Still as a contributing factor to the headache about the labor shortage crisis, slow immigration has had its share being a part of this crisis.
During the recession period, a lot of workers returned to their countries, immigration control measures have tied most of them up such that accessing the country becomes even tougher. Still better jobs in their countries have caused most of them not to return making this labor shortage a pandemic.
Trends in the construction field
Though challenges are still very many, there is hope for most contractors struggling to keep up their jobs against the current dodge of technology and shortage of labor. Major emerging trends in the construction industry have been remarked and points to the following;
- Skilled labor shortage
As pointed out earlier, during the recession period, quite a significant portion of the employees left to never return. This left quite a huge scar in the construction industry.
Shortage of the skilled labor in the construction industry is not a new thing and experts argue that the problem will continue to be in existence this year and even beyond.
Finding the right people for the job and people responsible enough to fill in the spaces for the new and oncoming project will still be a milestone.
Therefore, as much as we would want to ignore this fact, it is a trend that will be on the rise this year and years to come.
- Single-family and multi-family residential buildings
With about 17 percent rise in the single-family residential buildings, experts argue that this is a slow growth rate trend or it is a recovery.
The multi-family residential buildings have come out greatly with a high kick start. However, the trend in the multi-family residential building is expected to go down again in 2017.
- General outcome of store and commercial centers
A great rise had been anticipated for the stores and commercial centers this year. However, going by the current trend, mergers and some significant closure of this stores have affected the turnout expectation during this year.
This trend is expected to fall down from the current rise of 3% to 0% in 2017.
- Offsite construction trend
Prefabricated construction method or the modular construction is expected to gain momentum with a high rate since it is considered one of the best construction method that offers much more benefits in terms of construction time reduction.
Comparing it with other methods that are common and that most of the company stick to, certainty is guaranteed and including in the list of the benefits that come with this method is that it minimizes the waste and cuts cost.
Therefore, taking into account all the benefits realized with the prefab method, this is one of the trends seen making greater efforts this year and it will continue to be on the rise the coming year mostly in the health sector.
- Establishment of net-zero building
In an effort to promote sustainability, the contractors will be expected to embrace this concept by making sure that they recycle materials and that there will be the repurposing of the materials. As an effort to keep the industry still in the rising glory, stakeholders advise the contractors to make sure that they are able to effectively and efficiently use the renewable energy sources.
- Using the latest technology in construction
As a new trend that is on the rise, use of the latest technology that includes the smartphones, the drones and all that to monitor construction progress could mean reduction in the overall cost incurred. This are used to maintain a close tie between the project construction members and making sure that they are informed of the latest developments in the ongoing project.
From what is going on, construction industry is on the process of full recovery from the last full blow of economic recession. However, great advancement in the industry are still coming in this year and 2017 is expected to spearhead the overall performance of the industry. Therefore, there is still hope in this industry to even make greater steps in the future.