Like numerous other business sectors in the world, the construction industry suffered a heavy blow by the outbreak of COVID-19 which effectively disrupted the supply chain and labor market. Now, that the world is finally kicking back into high gear, the construction sectors experiencing a new surge.
Now, after a 1.9% contraction in 2020, the industry is forecasted to grow by 6% by the end of 2022.
This new surge will inevitably shake up this somewhat sleepy market and usher a whole slew of exciting developments. So let us take a look at some of the most interesting and pivotal news that are going to shape up the construction industry next year.
Expansion of Business Information Modeling
For years now, Business Information Modeling (BIM) has been cited as one of the most important trends in the construction industry. if you are unfamiliar with the term, BIM is a software concept that allows engineers, designers, and construction workers to collaborate in detailed 5D and 6D models (the latter type also includes the energy budgeting) in real-time and share valuable insights. Up until now, BIM was considered a novelty. In the following period, the tech will finally break into the mainstream and reach the estimated value of $9 billion.
Women are finally getting appropriate PPE
Recent years have seen a great increase in the number of women entering the construction industry. This development desperately begged for the expansion of the standard-issue PPE (Personal Protective Equipment) which was mostly modeled around the necessities of the opposite sex. However, during the previous period, we have seen an increasing number of manufacturers issuing protective equipment options made exclusively for women. There is no reason why this trend won’t stick throughout 2022.
IoT sets foundations for workflow automation
Over the last couple of years, Internet of Things technology completely changed the way how we collect and process data relevant for managing workflow. This development was, in no small measure, brought about by the rise of automated AI software platforms capable of integrating with other software systems like ERP and CRM. Now with the benefit of the latest-gen IoT construction equipment maintenance software, the construction companies will finally become to get the same level of operational efficiency.
Natural disasters raise the concern for building safety
Climate changes have long since sized to be some of the hot topics experts like to discuss on the TV and instead became an integral part of our lives. According to a recent article, more than half of the US buildings are in areas prone to climate-caused natural disasters which is a very concerning fact. The same natural disasters also raise the concern for the safety of workers on the construction sites. Due to all these reasons, construction sites of 2022 will need to implement more thorough and comprehensive safety measures than usual.
Lower taxes stimulate the growth of the industry
Unlike some other countries like for instance the United Kingdom where construction rates are under the heavy influence of the regular VAT (Value Added Tax), the regulations stateside have experienced a much more turbulent history over the last couple of years. Going down a long path from the previous years when the whole construction sector experienced the highest effective tax rate of any industry, the recent tax reforms gave the construction companies a much-needed boost laying the groundwork for a steady rise throughout 2022.
These few mentions are far from a complete story but they give a good outlook into some of the major developments we will see shaping the construction industry in 2022. The last couple of years inflicted a strong blow on the construction sector. According to all relevant indicators, the next year will be the year of recovery and rejuvenation. To see the final outcomes of this development, however, we will have to wait until the next December.