8 Construction Industry Trends to Look For in the Year Ahead
As we turn the page on another decade, it remains helpful to keep an eye on the year ahead and begin planning. The construction and contracting business is currently undergoing a boom, with lots of new projects being planned and built. North Georgia, and Magnum Contracting LLC, are no exception to this trend!
Magnum Contracting has many exciting projects coming in the year ahead (more about those on upcoming blogs) so we thought it would be a good time to do a little research and report on what the rest of the construction industry will be up to in 2020. Here are 8 Construction Industry Trends to look out for in the year ahead.
B.I.M.(Building Information Modeling) – BIM helps contractors visualize a project from the very beginning of planning by using computer-generated images of buildings, roads, and utilities. This helps reduce waste and increase efficiency on a job.
Rising Costs – unfortunately, rising material costs are projected for the upcoming year. According to eSub, “the construction industry is facing an increase in construction costs year after year, making profit margins slimmer than ever. Additionally, construction material costs are facing a year-round pricing increase, rising nearly 5% during the 2018 calendar year.”
Labor Shortages – the labor market is continuing to look robust, even though as recently as 2017 80% of firms reported labor shortages. This is a highly volatile data point, so it’s hard to predict what 2020 will bring, but every company needs to be prepared to face a potential shortage of qualified employees.
Sustainability/Green Tech – lots of people talk about this stuff, but few really understand it. According to the EPA, “Sustainability” means “the practice of creating structures and using processes that are environmentally responsible and resource-efficient throughout a building’s life-cycle from siting to design, construction, operation, maintenance, renovation, and deconstruction.” Green construction means taking all of this into consideration and planning buildings that are designed to have a low carbon imprint and environmental impact, with sustainability being a goal of green tech.
Safety – Magnum Contracting is a leader in the field of construction-site safety and we’re so proud of all that our managers and employees onsite do to maintain proper safety protocols. This puts us a step ahead of this big 2020 trend, a greater emphasis on employee safety. One of the biggest sectors in this will be safer equipment, with everything from dozers to workboots being designed with safety as a number one priority.
Prefabricated Construction – also known as modular construction, this piece of the industry is really taking off. The increase in speed and efficiency that comes with using modular construction has meant a projected annual growth rate of 6.9% and a value of up to $157 billion by 2023.
Project Management Solutions/Construction Management Software – these software programs are getting more advanced and easier to use at the same time. Everything from project planning, timekeeping, and scheduling can be handled with project management software. Many companies are also creating their own construction management software, such as LETELmetrics and their Professional Business Solutions. Be sure to check out our friends at LETEL and what they could do for your business in 2020!
Robotics – Drones, drones, drones. Again, LETELmetrics and Magnum Contracting have been pioneers in this field, but the use of robotics will continue to expand and evolve in the next year. Who knows what kind of new tech is just around the corner?
2020 is going to be a great year for the construction business. When you’re ready to get to work on your next big contracting project, reach out to Magnum Contracting and you’re sure to be partnering up with the most up-to-date and forward-thinking contractors in North Georgia. Let’s get to work!
