In any industry, it is always advisable to look at the current trends and their impacts on the future. With the continuing evolution and growth of the construction industry, there is a need for companies to remain updated.
Colorado is one of the healthiest construction marketplaces in the country. 2018 has seen the state grow from $18 billion in 2016 to $21.6 billion in 2017. This represents a 20% increase. In 2018, construction starts are expected to grow to 7 percent, which is 4 percent higher than the national figure.
Here are some of the trends that are projected to carry into 2019 from 2018 in Colorado.
1. Labor shortages
There is a demand for approximately a quarter of a million construction jobs in the US. Many open projects are facing labor shortages and slow production. It does not look like there will be a resolve for the problem any time soon.
Many companies are turning to fabricated construction to meet project deadlines. The alternative has not produced any tangible solutions yet to the decreasing labor force.
This is one trend that will continue into 2019. The unemployment rate is very low in the industry. It explains why there are many open positions for construction workers.
Companies are willing to increase bonuses, but recruiting new employees remains a struggle. Companies should find strategies to draw more people into the industry if they are to stay in the market.
2. Increase in Residential Construction
The projections of growth in the construction industry will vary greatly. Nonetheless, there is a consensus for a slowdown in non-residential construction. A forecast by the American Institute for Architects shows that nonresidential construction will decrease from 3.8% to 3.6%.
The ConstructConnect predicts that private residential construction will increase to 9% from 6%.
There was a forecast that the institutional construction sector would offset decreases in other sectors in 2017. It did not happen as expected, and there is an expectation that there will be minimal growth in the area in 2019.
3. Investment in Public Projects
2018 saw the many public projects come up, especially in infrastructure. The former transportation secretary noted that the state of infrastructure in the US was in dire need of renovation. Talking to the Autodesk University, he said that the focus was on merging existing public projects.
The country is highly investing in public projects to explore more technological options. The projects extend beyond the traditional bus and rail systems. Hyperloop systems and high-speed maglev trains are some of the projects that have a green light. The projects, and similar investments, will carry on into 2019.
4. More Sustainability Projects
Many giant companies are expanding their spaces. They aim to create room for construction projects that incorporate some green elements. Sustainability is an issue of concern in most construction projects.
Sustainability has been a significant trend in 2018. Whether it is a net-zero building or just a few components of the green technology, sustainability will be an issue of concern in 2019. One of the developments to watch out for is the mass usage of timber in construction.
Recycling construction waste has also gained momentum. Debris from renovation, construction, or demolition projects is finding its way into better use and not into landfills. For example, concrete is used as an aggregate base for roads after crushing.
5. Subdued Growth
There is a forecast that the amount of growth in construction spending will remain subdued. The forecast indicates that there will be a 4.8% increase, which is an increase to $773.1 billion.
Commercial construction will have a 12.4% increase in 2019, and the growth will be conservative all through to 2021. The industrial building will experience a 5.6% decrease, which is a sharp decline from the 22.8% increase in 2017. Retail constructions will decrease by an additional 2.8% after the 16.5% drop in 2017.
The forecast is that the total construction spending will increase. However, the growth rate will not reach its exponential levels.
Final Thoughts
Contractors are looking ahead in anticipation for what 2019 will bring along. It appears like most of the trends in 2018 will continue to take precedence in the coming year.
Labor shortages will continue to hit the industry. Many open job opportunities will remain unfilled because the youth do not want to take them up. Without proper strategies to fill up the positions, companies will continue to suffer the labor crunch.
The need for sustainability projects will see may waste materials recycled. Many companies are also opting to go green in their construction projects. There are also more concerns to educate teams about green products and practices that they can integrate into their spaces.
With these trends in mind, let’s be hopeful for a great 2019!
2 Responses
Great post! The second point comes as no surprise as people are now preferring to build their own homes rather than living in a rented home. Mortgage loans have facilitated them in doing so and thus the private residential construction is increasing. Moreover, it feels so nice to see that that building owners and constructors are incorporating green elements into their projects.