Workforce Issues

As has become increasingly apparent over the past few years, there is a skilled labor shortage in the construction space. Simply put, there is an aging workforce and less qualified workers available. Millennials and younger generations are showing less interest in entering the trades and the current workforce is graying.

The Need To Adapt To Technology

It is necessary for contractors (and even owners in certain circumstances) to catch up to the rest of the world when it comes to technology. They will need to use more and better cloud based software, and integrated collaboration tools. The use of building information modeling (BIM), virtual reality, drones and laser scanning, continues to grow in the industry. However, because technology has come later and more sporadically to the construction industry, there is less uniformity and general contractors use a wide variety of software.

Increased Materials Cost

Even putting aside the impact of a “trade war” the increase in project costs over the past few years has resulted in increased material costs and even unavailability of concrete products such as aggregates and cement. Material costs have increased 10-12% over the past year, and future costs are likely to rise even more. in addition to the technology suggestions above, costs can be held in better check by use of sophisticated supply chain systems which eliminate the costs of the middle man, at least in part.

Environmental and Sustainability Issues

Although it is likely that we will continue to see environmental regulations relaxed at the federal level resulting from the policies of the current administration, I believe sustainability and environmental regulations will continue to impact construction. Given that the construction industry is responsible for producing more than 25% of the world’s carbon omissions, the industry must continue to take steps to combat their adverse impact.