When talking about the construction industry, millions, even billions of dollars, are mere change. The value of structures created by the industry is worth $1.3 trillion. The number of businesses is about 680,000, employing some seven million workers.
Raw and fabricated materials suppliers from metal to wood, as well as landscape service providers, form part of the industry. Both public and private sector spending have gone up. The public sector saw a 4.8% spending increase in April 2019 compared to the previous quarter with heavy activities in the highway and street developments, educational infrastructure, and transportation services. The private sector, meantime, recorded a 2.9% spending increase highlighted by developments in the power sector and commercial building infrastructure.
While it might seem an auspicious time for the industry, it does not come without challenges. If your company is a player in this gigantic industry, here are a few things you should note to stay ahead of the competition:
Understanding Industry Trends
Understanding trends in the industry helps companies prepare to tackle what might lie ahead both in terms of opportunities and challenges. Here are a few trends in the industry that your company should be aware of:
- Role of technology. Technological integration is no longer just a buzz word. It is part of the primary trend that will continue to shape the industry for years to come. Project management software is becoming more robust and integrated to include scheduling and time in order. Another development that’s aiding companies is the use of drones in aerial photography for a more accurate landscape rendering.
- Prefabrication. Prefabrication and modular production are both cheap and energy-efficient, which makes them very popular amongst companies. Rising prices of other materials will be one of the main drivers for the continued popularity of these options.
- Of hard hats and boots. Companies will continue to ensure safety in the worksite through the use of new equipment products, such as smart boots. These boots will be rigged with GPS devices that can send signals via Wi-Fi to determine a worker’s location or if they have fallen. Vests will become lighter and more comfortable but will remain durable. Apart from landscape photography, drones can also take videos to monitor the safety and security of workers.
These trends will impact companies in a big way, particularly in terms of creating efficiencies. The goal of creating efficiency is to address common problems, like missed schedules or going over the budget. Imagine a project which started with a $2.6 billion budget and a scheduled 1998 completion date, finally costing $14.8 billion with the project ending in 2007.
Management software will create efficiency because it can handle various facets of project management from beginning to end, including bidding preparation, billing, reporting, HR monitoring features, as well as incident reporting. Companies need to find a software solution that works for them.
Another software tool that will aid companies in creating efficiency is Building Information Modeling. Speed in and spread of communication make project execution quick and decisive. BMI is a collaboration platform allowing various stakeholders to stay connected throughout the multiple stages of a project in real-time.
These are but some of the anticipated trends in the industry and how companies can better their performance. Using sustainable options are also on the radar. Make sure that your company is familiar with these trends and is ready to take on the challenge of staying ahead of the competition.