Trends in the Construction Industry

Several trends are already visible in the construction sector and are expected to continue. One of these is the rise in raw material prices. Since August 2021, raw material costs have climbed by more than 100%. Another trend is the use of IoT technologies to improve relationships and save expenses.

In May, the average cost of EV raw materials hit $8,255 per vehicle. This is up from $2,000 in March, mainly owing to rising lithium, cobalt, and nickel prices. These essential ingredients are necessary for the production of batteries. However, even before the increase in raw material prices, the prices of typical automobiles with internal combustion engines increased by 106%. Steel and aluminum were the most costly raw materials in August, but they are now just one-third the price.

Rising input costs are the fundamental reason for increasing worldwide pricing. Due to supply restrictions, companies are finding it harder to make items at low prices. As a result, producer prices have grown in the majority of economies. For example, the manufacturing producer price index in the United States increased to 127 in September from 110 in August. This suggests that the global economic recovery has peaked, and supply limitations are expected to last until 2022.

Because of a severe scarcity of trained personnel, the construction sector's labor cost has soared. As a result, construction costs have risen, construction schedules have lengthened, and property prices have risen. As a result, many contractors are concerned about growing labor costs. Since 2011, the shortfall has increased by more than 25% and is anticipated to worsen by 2022.

The supply and demand chains in the building business are intertwined. As a result, labor mismatch might impact the project's life cycle and supply chain. For example, in late 2021, project owners reported 25% delays and incompletes, owing in part to the difficulties in hiring experienced labor.

Construction organizations will be able to monitor their personnel better and lower the likelihood of accidents due to IoT deployment. Wearable technology, for example, is a beautiful tool for measuring the health of construction workers. It can also notify management of potentially hazardous circumstances. Furthermore, smart glasses can assist in monitoring the demands of building sites.

Although the construction sector has been sluggish in accepting new technologies, IoT devices are gaining popularity among owners. Companies have seen the benefits of employing these gadgets in recent years. Some have also claimed lower maintenance expenses, which is a huge advantage for building firms.

Modularization offers several advantages, ranging from cheaper building costs to shorter build times. In addition, modular construction can enhance energy efficiency and save maintenance costs by eliminating up to 80% of the work required on-site. Modular building is also more environmentally friendly. It consumes less energy and water and may be recycled to construct new structures.

Another advantage of modular construction is its flexibility to fit into small urban locations. In such cases, staging and moving items can be a significant headache. It is not only uncomfortable for employees, but it may also lead to theft. On the other hand, building modules in a factory may make construction sites cleaner and safer. They also provide workers with more excellent room to move about.

The construction sector is undergoing a technological revolution as the demand for trained labor grows. Thanks to new technology, workers may now conduct their tasks without leaving home. Drones, for example, may conduct Jobsite inspections swiftly and effectively, spotting risks and photographing the progress of the work. They can even produce as-built models.

Construction is an important economic industry, accounting for around 13% of the global GDP. Despite this, many building sites have shuttered, and those that remain open have encountered operational constraints and supply chain disruptions. These difficulties have been reflected in the industry's performance in financial indices.

While automation has long been seen as a promising technology for the construction industry, a few significant impediments to more comprehensive implementation exist. One of the most crucial is a labor shortage. Another problem is a lack of training. And there is a fear of change. Finally, another barrier is the lack of a clear business case.

Fortunately, there are further advantages to automation. For one reason, it aids in the reduction of human mistakes and mental stress in the workplace. Second, it minimizes working hours and occupational health concerns. Another advantage is that construction workers may delegate heavy lifting to machines, allowing them to focus on controlling the equipment and doing minimal chores.