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Construction Industry Challenges in 2022

By July 29, 2022No Comments
building materials

Construction Industry Challenges & Opportunities 2022

In addition to the present ones, every year brings a new set of new challenges for various industries across the globe. The construction sector is not an exception. Despite its apparent expansion, there are difficulties and setbacks that attempt to stop or hinder the growth of this industry. Here are a few problems.

1. The Covid-19 Pandemic

Developers, contractors, workers as well as owners have been affected in different ways by the Covid-19 virus. The new normal impacts almost everything from building activities to the slow flow of materials. Some projects have been forced to stop.

The construction output in the world is expected to decrease by 3.1 percent. This will be a stark contrast to the 3.1 percent increase observed in the year 2019. The industry has been struggling to complete its main projects, while simultaneously trying to ensure the safety of its workers. But, companies are working to remedy this by adopting new strategies. In particular, many of them have attempted to reduce their size across a range of sectors and others are trying to operate within the new timespans. It is essential to be agile for the business to get through these challenging times.

2. Slow Technology Adoption

Numerous studies and surveys have shown it is slow to adopt new technologies. 2022 is no more or less. Business honors and stakeholders are the culprits for not investing in technological advancement. They stick to technology that has been discarded by time, for example, telematics or mobile phones. In a way, technology like drones VR, robots, 3D printing, and IoT could help in solving various other problems in the field.

As we move into a time when technology will become an integral part of the industry, those firms and businesses that adopt the technology earlier will surely be the ones to reap the benefits. The ones who refuse to adopt them that will not adopt technology, only themselves to be accountable.

3. Shortage of Skills

Before the pandemic struck us, the construction industry was already dealing with this issue. The construction industry hasn’t attracted enough skilled workers to meet the increasing demand. Recent research revealed an increase of 75% in companies are considering adding to their staff, while 78% are struggling to find qualified workers. An overwhelming 82% of respondents are not expecting any changes from this. To make matters worse the industry is home to quite an alarming 21% of employees over 55.

However, just 9 percent of workers are aged 24 or less. The age at which the old generation of workers is retiring is higher than younger generations that are coming into the workforce. That means that construction companies will be struggling in their search for workers to meet their requirements. A lack of diversity can not be expected to make things more difficult.

4. Worker Safety

Since the beginning, the safety of workers is a major concern in the construction sector up to the level of recording the largest numbers of fatalities and injuries. The accidents affect the workforce as well; the median amount of length of time workers take off from work is 10 days. Some even take longer. This is a significant quantity of work is lost due to accidents and illnesses that can be easily prevented. Every business owner in the construction industry should be the first on their list to safeguard their workers. Businesses that have strong safety policies can see this in their performance. Regular training and safe working methods should be strictly followed.

5. Stagnated Levels of Production

Contrary to other sectors, the construction sector has seen tiny improvements when it comes to productivity. Recent research has revealed that although other sectors (such such as the agricultural sector) continue to climb the ranks of productivity however, the industry’s productivity has stagnated at the same level as it was in the past twenty years. Furthermore, it’s being predicted that productivity levels will begin to decline if everything else remains the same. These numbers are alarming and especially so as construction projects become more complicated.

A variety of factors have led to this: inadequate communication between people involved, poor schedules, poor planning, and time waste. It is shocking to learn that the majority of the employees have to be idle as they wait for the materials and supplies to arrive. There is some optimism. For instance, methods of construction that require high-level communications, such as design-build have been embraced. The technological advancements and the software for managing projects are predicted to gradually transform the industry.

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