Business analysts are cautiously optimistic about the growth of the construction industry. They believe the industry has entered a realignment and renovation phase, which should produce increased profits for the companies able to keep up with changes.
Here are 4 trends they are watching.
Shift in retail construction
Online shopping and sales continue to increase, and are expected to grow for many years. This is causing the need for retail construction to shift, but not decrease. It is moving away from walk-in stores to regional distribution centers, warehouses and manufacturing centers. This is especially true for the grocery industry.
Amazon and Walmart have declared war on each other, and other grocery/retail companies are closely following their transformations. They are developing new ways to get product to customers – ways which will require new buildings and major refits of existing ones.
Green and energy efficient houses/buildings
The green movement in construction is here to stay. Even though it took hold faster in residential than in commercial, the trend toward eco-friendly, health conscious buildings is putting pressure on all contractors to offer clean and resource-efficient options to customers.
Clients’ demands and expectations for green solutions, options and products are creating changes and innovations in all trades. They may not take the options, but they are increasingly expecting to be offered choices.
Technology
The construction industry will increasingly see customers expecting tech – software and hardware – solutions to problems. Tech has significantly raised the bar for accountability, safety, quality, productivity, communication, transparency and on-time/on-budget project management.
One of the biggest trends in safety and productivity is in wearable tech. It includes: smart safety vests with GPS and emergency buttons, smart hard hats with virtual display visors that send and receive information, smart safety glasses with camera’s giving real-time feeds, jobsite reality devices to show/change design elements in the field and bionic suits.
Integrated project delivery
Integrated project delivery is changing the construction industry. The idea that collaboration is essential to the success of any project is not new. Experts knew it was cost, quality and time efficient. But, no one had a good system for making it happen.
For the first time, contractors finally have the tools to share information in real-time. They can immediately communicate up and down the supply chain, with customers, office to jobsite, project manager to foreman and contractor to sub-contractor.
The construction industry has been shifting and will continue to do so for many years. The industry is large, well established, conservative and slow to make changes. The companies that understand and adjust to these new trends will beat their competition.
At Cogent Analytics, we never stop looking for ways to improve your business and neither should you. So, check out some of our other posts for helpful business information:
