All industries have their projected trends for the year. Some of them are correct and others never come to fruition. Since we are only a month into the new year, I figured it was a good idea to look at some of the trends for the upcoming year within the construction industry. These trends are not a guarantee, but merely an observation on the way things have been headed.
Labor Shortages Continue
2016 was no stranger to labor shortages and it looks like this unfortunate trend is going to continue steamrolling on. The economy has remained strong, so there is plenty of work to be done. Unfortunately the industry as a whole is having a difficult time hiring skilled laborers to staff construction sites. As long as we continue to see more and more jobs come through the door, it’s like the shortage will continue on.
Rising Costs of Materials and Labor
Going in hand with labor shortages, the cost of labor is supposed to be affected as well. This makes sense for a few reasons. Laborers have to work harder, longer hours due to the shortage of workers. If they are working more and harder, they are absolutely going to demand more money.
Materials are speculated to increase due to inflation as well. Over the past several years, there has not been much increase in material cost, but because of the amount of work coming through, companies have taken advantage and raised the price of the work. The material costs have not matched the increase of the cost of construction, but according to industry leaders, we have reached the tipping point.
Virtual reality devices were huge towards the end of 2016 among consumers. It was a huge source of entertainment. Experts are saying that the technology is going to be adapted into more practical uses, including construction in the coming year. They will be used in areas like training and even be used to provide clients with an in-depth view as to what the finished project will look like. Pretty neat stuff!