10 Must-Watch Construction Industry Trends for 2022 to Stay Competitive
10 Must-Watch
Construction Industry Trends for 2022 to Stay Competitive
In Europe, countries like Spain, Ireland and Romania are experiencing
a boom in recent years in the construction sector. Asia-Pacific is expected to
lead the construction market in near future, with China and India being the
main drivers of growth. China, India, Indonesia as well as several developed
economies like U.S. and Russia are anticipated to occupy about 3/4th of the international
construction market in the next 5 years. Against this backdrop, real estate
agents, contractors, engineering companies, construction firms and residential
and non-residential builders are the prime sectors. According to the forecast
made by Markets and Markets, the global industry would be led by infrastructure,
private housing and commercial construction activities. Before delving deep
into the future of the construction
industry after Covid-19 and the new
construction trends 2022, let's take a quick look at the backdrop of the construction industry 2021.
What is the Outlook
of the Construction Industry in 2022?
The overall outlook of the construction industry varies to a
great extent by country and region.
Global Prediction |
Countries to Rise |
Sectors to Grow |
Star Performer of Economy
Recovery from Covid |
Reasons for the Growth of
Residential Construction |
3.2% growth in 2022 |
China |
Residential Construction |
Residential Construction in USA |
·
Bigger living space ·
Low mortgage rate ·
Low housing inventory |
USA |
As per GlobalData, there would be a 3.2% growth of the construction
sector throughout the world in 2022. That could be the slowest growth of the
decade but the industry is not slow in all places. Even though the Middle East
is on a decline, the Chinese are accelerating infrastructure investments for
preventing similar market conditions. The US construction industry is predicted
to rise by 1.8% in 2021 and 3.7% in 2022. The forecast assumes that residential
construction would continue to grow regardless of the supply chain challenges.
Some of these challenges include the dearth of building materials and rising prices,
lack of skilled labor & land and augmenting costs for new homes that cause
project delays and a boost in price inflation. The residential construction
sector constitutes the star performer of US economic recovery from the Covid-19
pandemic with a double-digit growth rate since the third quarter of 2020. The
sector has also made significant contributions to the economy and construction
industry. Demand for bigger living space, low mortgage rates and a low housing
inventory supported the growth of this segment.
Where is Construction
booming in the US?
In 2021, the states that have seen the majority growth
include Florida, Texas, Arizona, Georgia, Washington, and Nevada. They have
observed residential developments with the fastest-growing city being Texas.
Construction Industry
Trends in 2022:
After a year of turmoil due to the COVID pandemic, 2022
would be the year of reemergence and growth. The new trends in construction
technology would change onsite construction, enhance the ability to win
projects and increase profits. Further, it would bring about a change in the
role of industry professionals. New ideas would reduce cost and labor
shortages, paving the way to decreased error and wastage. 2022 is set to be the
year showing some common themes to become more evident globally.
Here are 10
construction trends to watch that would influence the sector as a whole and
help you stay competitive.
1. Protective
Equipment: With the impact of the COVID-19 pandemic, there are
strict guidelines for the construction sites to stay updated with safety
protocols as per state regulatory measures. The industry witnessed the rise of
machines that help to identify safety issues and eliminate all threats at the
pre-construction stage. Wearable innovation at the job site with ‘work boots’
connected to Wi-Fi, alert others on the site if someone falls. ‘Mules’ are used
to move or transport hazardous materials. Similarly ‘tasked robots’ help to
construct scaffolding as well as lay bricks autonomously. Some robots are also
prepared to re-augment human decisions like deciphering and translating data
into actionable insight and creating a space for higher-level jobs. People would
trust the 3D printing technique, which leads to reduced risk of transportation through
environmental sensors, detecting, heat, noise and wind at the construction
site. 3D printing also warns construction workers to evacuate and move
expensive construction equipment in case of a natural disaster or emergency.
2. Technology
Usage: Technological innovations could
enhance operational efficiency throughout 2022. Some of them include Smart
Contracts, Blockchain, Drones, Augmented Reality (AR), etc.
·
Smart
Contracts: Smart contracts are negotiated, verified and automated by a
computerized protocol. ‘Digital Built
Britain’ or the phrase coined to describe the next level of BIM maturity recommended
‘smart contracts’ for construction procurement in Level 3 BIM, as a replacement
of paper-based contracts. With smart contracts, organizations work in a shared
system to do business, enabling them to purchase, track and pay for services.
Construction firms could use smart contracts as an all-in-one tracking system
from different parties, enforcing blockchain.
·
Blockchain:
Implementing this technology helps to improve project transparency,
reducing back-and-forth communications over simple objectives. The powerful
component of the technology provides a secured workflow and a streamlined
procurement process, enabling all stakeholders to enhance productivity. Using
this system, AEC professionals make faster closeouts, enhanced security,
improved tracking and automated supply chain.
·
Drones: Drones
continue to be the fastest-growing trend, year. The technology provides more
benefits than aerial photography for real estate as well as commercial efforts.
Advanced drone software facilitates rapid decision making, streamlining the
construction workflow. Drones are used in aerial surveys, excavation
measurement, material stockpiling, and monitoring job site progress and personal
safety. The technology helps to decrease labor costs and the risk of theft,
keeping projects on schedule.
·
Artificial
Intelligence (AI): AI helps to track real-time interactions with workers,
objects and machinery on the site, alerting supervisors of potential safety
problems, productivity issues and other construction errors.
·
Augmented
Reality (AR): AR enables remote
workers to inspect job sites as if in person. AEC professionals implement AR
for efficient project-staging, and making preconstruction projects for buyers,
saving time & money and providing improved insights. AR combined with
wearable technology enables 3D visualization of future building projects,
automated building measurement, safety training as well as hazard simulations.
·
Building
Information Modeling (BIM): BIM software is used at a dual monitor computer.
The technology helps industry leaders to
excel with better efficiency, allowing users generate computer renderings of
buildings. The ease of model management and data sharing enables superior
prefabrication, leading to accurate and on-time completion. According to
Autodesk, the intelligent 3D modeling process
helps professionals manage buildings. As per Finances Online, a popular platform
for SaaS/B2B software, top BIM software applications for 2022 include Autodesk
BIM 360, Trimble Connect, Navisworks, Revit, BIMx etc.
3. Need
for Skilled Laborers: The most significant construction trend in the last
few years is the increase in the demand for skilled labor. Women are coming up
to fill competitive roles. The industry also targets Gen Z, born between 1995
& 2010, in recruiting. The COVID-19 pandemic changed the attitudes towards
education, resulting in increased attitudes towards trade school, positioning
construction firms to exhibit growth potential in the industry and abundant
opportunities for experimenting with new technologies.
4. Accessibility
of Worksite & Mobile: Mobile applications facilitate workers to execute
real-time inspections and obtain accurate measurements from mobile phone camera.
The pandemic mandated that the team collaborate without access to materials,
space or other teammates. AECOM – the world’s trusted infrastructure consulting
firm developed technology for virtual public meets so that projects continue to
go ahead without personal gatherings. Other mobile applications include ‘AirMeasure’
– the ultimate AR measuring tool and ‘Infotycoon’ – a cloud-based quality management
tool to manage & control documentation, workflow and compliance.
5. Innovative
Building Materials to Combat Rising Costs: U.S. Bureau of Labor Statistics
stated that the Producer Price Index for construction goods increased by 17% in
2021. Increased rate of interest leads to further pressure on construction.
Technologies like drones, Augmented Reality and Building Information Modeling facilitate
in combating the cost pressure to some extent. Using some of the innovative building
materials like self-healing concrete, transparent aluminum, 3D graphene,
invisible solar cells and light-emitting concrete also help in this regard.
6. Green
Building: Green construction is the most expected standard for homebuyers and
commercial tenants with sustainable construction coming to the mainstream.
Renewable energy captured 11% of the energy market in 2019 (according to the
U.S. Energy Information Administration) and is anticipated to grow in future.
Buildings are accountable for 40% of U.S. energy consumption as well as 30% of
greenhouse gas emissions. The benefits include reduced carbon footprint,
resource usage and building models. It is evident as per research that green
buildings have a positive psychological and physiological impact on inhabitants
as well as a passerby. Nowadays, the practice of having rooftops with the plant
is quite common in urban places across the globe.
7. Modular
and Offsite Construction: Prefabrication and modularization aren’t showing any
signs of slowing down. The market dominated by the residential sector is anticipated
to rise to about $110 billion by 2025, driven by a dearth of skilled labor and
cost-cutting techniques. 21-story Citizen M Bowery Hotel in Manhattan, 2019, is
one of the tallest modular construction projects in the United States. Several
international builders have plans to reduce on-site construction activity to
25% by 2025 through prefab construction. Modular projects provide the ability
to regulate employee safety in climate-controlled and ventilated environments,
making them ideal for maintaining social distancing practice.
8. Construction
Management Software: Construction management software applications are
considered to be vital tools for staying competitive, building a business and
mastering operational efficiency. The best software manages comprehensive needs
starting from Request for Information to data compiling, file sharing with
teams, budget, documentation, payroll and inventory monitoring. Some of the
competent construction management software applications for 2022 include Autodesk,
Buildertrend, Fieldwire, Procore, Quickbase and RedTeam. Choose the right construction management
software to manage your needs by evaluating customized options and training to
get up and running.
9. Emphasis
on Residential Projects: As global investment from companies enhances in megaprojects,
Skanska, announced that they’re not pursuing large transportation public-private
projects, rather emphasizing low-risk arrangements. Residential construction spending is up by 25%
in 2021 and is expected to rise by 7% in 2022.
10. Smart
Cities: Tech companies like IBM, Cisco and Microsoft
are investing on megaprojects for building smart cities. They are more complex
and interconnected compared to most megaprojects and need intense planning and
development before commencement. The international smart city market is
anticipated to rise to 20.5%, attaining $2.5 trillion by 2025. Significant
megaprojects include Hudson Yards in New York City, Masdar City in the UAE,
Songdo International Business District in South Korea, and India’s Delhi-Mumbai
Industrial Corridor. All the projects range from 10 to more than $100 billion
and are anticipated to influence the economy, enhance infrastructure and
contribute to environmental health.
Final Thought:
All these construction industry trends are rapidly
transforming the global market. There’s no doubt that the increasing prices and
skilled labor shortage would continue in the coming years. Further, regulatory
challenges would become stricter with enhanced scrutiny on workplace safety and
climate change adaptation. By adopting new practices, leveraging new
technologies and investing in new projects, builders and developers would be
able to reduce risk, win more contracts and enjoy profitability. The pandemic
has indeed created an incongruity in the construction. However, looking
forward, you will get a positive outlook. The construction industry is likely
to experience an upswing throughout 2022 as the U.S. economy starts recovering
from the pandemic.
Added to that, new economic centers are continuously growing. While the construction firms endeavor efficiency and safety, grow your business through Building Information Modeling technology from Tejjy Inc. BIM Company in USA. Keep up with the demand of customers by staying abreast with the BIM engineering and construction industry trends in 2022. Schedule an appointment with Tejjy Inc. by contacting at 202-465-4830 or info@tejjy.com and embrace the latest BIM integrated commercial and residential construction trends 2022.
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