Author: Laura Black
Last week we kicked off a new summer blog series that looks past the hype and identifies the true tech trends that will stand the test of time. Before we can dive into all the fun new technologies that will undoubtedly make the construction industry more efficient and profitable, we must first consider the elephant in the room: cybersecurity. Every discussion we have from this day forward will have this one caveat underpinning every single discussion. Can the technology be secured? Data is the lynch pin of nearly every business and far too often we are seeing the bad guys…
Welcome to summer. As the temperatures heat up in many parts of the country, construction companies are tasked to determine what technologies are hot as well—which is easier said than done. It is far too easy to become distracted by “shiny technology syndrome” and to get lost in all the buzzwords prevalent today. So, for this summer, we are going to embark on a blog series and look past the hype and identify the true tech trends that will stand the test of time. For today’s blog, let’s set the stage. Peggy Smedley always says the construction industry is resilient…
3D printing has long been touted as a way to quickly build homes, buildings, and communities, enabling the construction industry to work more quickly. Now, we are seeing the technology is helping to rebuild a 3D printed school in Ukraine. The country has faced many hurdles due to the recent geopolitical conflict, resulting in the destruction or damage of more than 2,000 schools, with 277 schools completely demolished. Rebuilding in the days ahead isn’t going to be an easy feat, but the objective is going to be to address this infrastructure to rebuild schools. With 3D printing technology, the project…
Labor shortages have persisted in the construction industry for years—but where specifically are we seeing the most lags and what exactly comes next? Let’s explore these questions today by looking at data from new reports. Capstone Partners recently released its May 2023 Construction Services Sector Update, which gives a glimpse into market trends. While macroeconomic headwinds have challenged the construction services space, sector participants have remained optimistic in their outlook for operating performance. Notably, contractors expect growth in sales, profit margins, and staffing during the next six months. These projections have been supported by healthy construction spending, which increased by…
The construction industry is facing some steep hurdles today. Rising material and labor costs are cutting margins. But what exactly are the trends as it relates to employee pay? A new report gives some perspective. Today at Work is a quarterly workforce report that blends ADP’s data representing 25 million people with monthly worker sentiment surveys from a random sample of 2,500 workers to provide a recurring, people-centered, and comprehensive view of the world of work. Findings from the monthly survey of U.S. workers find there is a relationship between people’s feelings about their pay and whether they say they…
In the last two weeks, this blog has narrowed in on the subcontractor market and the remodeling market, looking at economic and technological trends for each market. Now, let’s look at nonresidential construction. The AGC (Associated General Contractors of America) notes that the price of materials and services in nonresidential construction specifically has increased about 0.5% from March to April, which is the largest increase since January. At the same time, an index that measures bid prices declined 0.3%. All this to say, margins are even tighter than they once used to be. Certainly, material price changes depend on the…
Economic forces, political unrest, labor shortages, supply-chain woes, and so many other factors are having an impact on the construction industry. What do projects look like for the years to come? This week, let’s dig into one specific market: home remodeling. The homebuilding market overall has seen strong growth in the past several years, even amid a pandemic and other disrupting factors, but now it appears growth may begin to stall. The Joint Center for Housing Studies of Harvard University releases its LIRA (Leading Indicator of Remodeling Activity) quarterly and uncovers declines in the year ahead. In fact, the Joint…
Material and labor costs are rising, rising, rising, and one new report digs into the impact these extra material and labor costs are having on subcontractors, suggesting they bear the brunt of the rising costs to the tune of billions in unplanned expenses. This is according to the third annual report from Billd titled 2023 National Subcontractor Market Report: $97 Billion in Extra Weight on the Shoulders of America’s Subcontractors. The company surveyed about 900 commercial construction professionals across the country. Most were business owners or executives who have been in business for 10 years or longer. This issue of…
Roughly 40-70% of a construction company’s total spending stems from procurement, and new research from McKinsey & Co., reveals many chief procurement officers in the industry believe consistent application of best-in-class procurement practices could lead to up to 12% cost savings. What’s more, procurement will play a pivotal role as construction companies navigate uncertainty and aim for sustainability targets. The insights come from McKinsey’s latest report, The Strategic Era of Procurement in Construction. Taking a closer look at this from a sustainability perspective provides deeper understandings. According to the research, the construction industry is directly and indirectly impacting 25% of global…
Green building is a growing trend, from construction through the lifecycle of a facility. Construction professionals are tasked with pushing the necessary data for certification throughout the entire building process, which can be challenging to say the least. Add into this equation that there is often more than one certification many construction organizations are looking to achieve—and the feat becomes even more difficult. The good news is, now, a new process aims to simplify requirements. Earlier in April, the USGBC (U.S. Green Building Council), GBCI (Green Business Certification Inc.), and the IWBI (Intl. WELL Building Institute) released a streamlined process…