Construction spending was up for 2021 and construction companies still had a lot to deal with in supply shortages and rising material prices because of COVID-19. In 2022, unfortunately some of these problems will continue. But commercial construction trends will continue as long as people are building homes and businesses. Read on to learn more about commercial construction and how 2022 will affect the industry as a whole.
Employment and Labor
Through the pandemic many labor shortages were happening around the world. Construction was no exception, shedding 1.1 million jobs in just two months (March and April 2020). In 2021 the construction industry added only 160,000 jobs after an up and down year. The skilled labor shortage has posed real challenges and these jobs are often looked down on as being dirty and low paying. For 2022, companies are going to need some aggressive recruitment tactics to help the younger workforce to continue or begin in the industry.
Another pandemic problem is material shortages and the rising costs of wood, iron and asphalt. In 2022 the prices for building materials are what to watch.
The delivery time has also been double or triple than what it was pre-pandemic and will unfortunately continue into 2022. This trend will affect contractors the most because they will need to stay on top of their suppliers and up to date on rapid changes in material costs. The pandemic will have a lasting impact on shipping rates and availability of materials for the significant future.
This means that in 2022 materials may still cost two to three times more than pre-pandemic and may be hard for supplier to have on hand. Construction companies will need to keep an eye on projects and how construction trends are affecting materials
Construction Technology Adoption
One positive aspect from the pandemic is the adoption of the construction trends of more technology. This industry has been historically slow to accept more beneficial technologies. While many individuals may think that robots are taking the jobs of humans, it is helpful to keep workers out of dangerous conditions. Other construction trends, such as drones, are able to conduct site searches and inspect tall or complicated structures.
New software is being integrated and will continue into 2022. Building Information Modeling (BIM) and VR simulators are also being used to train on new equipment.
Local, state and federal spending is going to be a driving force in 2022. An act passed in 2021, the American Rescue Plan Act contains $10 billion for capital projects that will provide communities with modern and quality infrastructure. Many of these projects will be taking place in 2022. The Infrastructure Investment and Jobs Act was also passed in 2021 to improve water, power and transportation infrastructure. Many of these projects won’t begin popping up until later in 2022 and will be ones to watch for. This renewed public investment will infuse millions of dollars into the construction industry.
What Does This Mean For The Construction Industry?
Despite some of the setbacks in 2020 and 2021, the construction industry is expected to grow by 8.8% percent this year. Construction trends and continuing to add laborers will help the industry even though there are supply shortages. Projects are starting to reach the planning stage and residential construction has helped the economy and the construction industry as a whole to rebound.
Government spending is also hoped to improve the construction industry in the U.S. This includes the upgraded infrastructure mentioned earlier as well as the upgrading of roads and highways. How do you feel about these construction trends? Do you think these will pan out?
Here at Sawyer, we know all that goes into a big project like commercial construction. For certain commercial buildings, there are standards and regulations that need to be met. An experienced commercial construction team will help to ensure that your building meets all of the requirements. The appropriate services will create a building that will meet all of your expectations and is up to code. This can go a long way toward preventing substantial issues from arising over time.
Contact us today for emergency restoration projects or construction projects.