Across sectors, trends and changes have been spiraling which has compelled businesses to adapt to the new normal of how to adapt to the challenges that followed. The construction and real estate industry were not left out as the rising cost of construction materials began to affect both sectors.
Furthermore, labor shortages also forced the industry to come up with innovative ideas in order to survive. Following these situations, we have outlined some of the possible trends that would also lead the year 2022 as shared by registered professional engineer Director of Business Development at JL Architects, Glenn Ebersole.
These industry trends are rapidly changing the market and the construction industry must adopt new practices, leverage new technologies and invest in new projects to reduce risk, win more contracts and enjoy profitability.
Increasing material costs
Rising interest rates are likely to compound all types of costs, resulting in further pressure on total construction costs. Technologies like drones, AR and BIM will be key in helping to maintain project volume and combat this cost pressure.
Shortage of laborers
One very noticeable construction trend is a tremendous increase in the demand for labor. Quality labor is expensive and competitive. More educated workers will be needed to manage and interpret the data produced by new technology.
Remote worksites and mobile access
Mobile applications for construction permit and facilitate work site access including real-time inspections, on-site accountability and accurate measurements taken from a mobile phone camera.
Modular and offsite construction
Modular and prefab construction are experiencing multiyear rapid growth that is not slowing down. The modular construction market, led by the residential sector, is predicted to significantly increase to almost $110 billion by 2025, driven by a lack of skilled labor and an increase in cost-cutting technology.
Green construction is the expected standard for homebuyers, renters and commercial tenants. Unfortunately, many sustainable and eco-friendly features remain out of reach, despite their long-term savings. This may change over the next decade as eco-tech and sustainable construction become more acceptable and affordable.
Focus on residential projects
The demand for residential housing keeps growing and residential construction spending rose nearly 25% in 2021. Residential starts are expected to increase by 7% in 2022.
These cities are more intricate and interconnected than most megaprojects and require intense planning and development prior to their beginning. The global smart city market is expected to grow 20.5%, reaching $2.5 trillion by 2025.