Construction projects in North America are forecast to grow 2.4% in 2022, reaching $1.94 trillion, up from $1.89 trillion in 2021. Despite rising material cost and labor challenges, the construction industry remains strong and continues to grow.
A mid-year update consensus survey of the American Institute of Architects projects construction spending to rise 9% in 2022 and 6% in 2023aia.org
With the passage of the Infrastructure Investment and Jobs Act, the North American construction sector is expected to grow by 3.7% in 2023. Here are a few trends to watch for in 2023 as the construction sector continues to roll along.
When utilizing Modular Design, buildings are constructed offsite and then put together on-site. This process allows for a shorter construction schedule, a greener building process, and smarter design.
The construction industry is rapidly shifting its focus towards sustainability and eco-friendly practices. These practices include minimizing material waste resulting from demolitions, switching to eco-friendly building materials, and choosing locally-sourced building products.
New Technologies Continue to Gain Traction
The remote workplace that grew out of the 2020 pandemic will continue to be integrated into the construction industry. Technologies like Building Information Modeling are being utilized to allow firms to visualize the construction design and production process before it even begins. These type of advancements offer significant savings in project time and money and will be an integral part of the construction process going forward.
Labor Challenges Will Continue
As the construction industry remains strong, an aging workforce and persistent labor shortages will combine to drive up costs, wages and the overall price of building in the United States. Currently, here are roughly 25% more unfilled construction positions than hires; magnifying the need to find and retain good workers.
Twenty percent of workers are 55 and older, and 61 is the average retirement age — meaning a fifth of the industry is at risk of leaving within the next six years.bisnow.com
2023 promises to offer great opportunities and challenges to those in the construction sector. At Condustrial, we work hand-in-hand with our partners to help them find and retain the workforce that is vital to our client’s success.