With discontinued projects, high unemployment rates and problems in the supply chain, the state of commercial construction in 2020 was not looking good initially. However, a Q3 Construction Market Overview by Cumming Insights show that the current market projections are now more positive.
In comparison to 2008 recession’s 10-year bounce-back to construction volume levels, the current market is now expecting a three- to four-year period before construction volume will return to pre-COVID levels in 2019.
As the economy starts to get back on its feet, these are some of the commercial construction trends—both old and new—to take into consideration before going back to the project site.
Modular construction is a process wherein a building is constructed off-site and it has been rising in popularity. Deloitte’s 2020 Engineering and Construction Industry Outlook highlights the move toward modularization and prefabrication of components.
One reason why pre-assembly in factories and modularization are changing the way we build is because this process can help with potential cost savings. A McKinsey research further supports this, revealing that one of the main productivity benefits of prefabrication is its potential to save Europe and the United States $22 billion annually by 2030.
According to a report by the FMI Capital Investors, an investment banking industry leader, there would be “more rigorous regulations and commercial demand for ‘green’ infrastructure [and this] will foster revenue growth” in the long-term.
We can already see the demand for sustainable and environment-friendly practices in commercial construction, particularly in the hospitality industry. Expect demand in LEED Certification, concepts such as “Green Building” and “ecological building” and solar-powered buildings from property owners and end users as a collective effort to conserve and protect the environment.
Another insight from the FMI Capital Investors report reveals that “contractors who embrace technology and energy efficiency capabilities will continue to drive activity.” This means smart contracts, construction drones, augmented reality and artificial intelligence will rise in usage and demand—all with the goal to boost project productivity and team efficiency.
These innovations, and other smart project management and collaboration tools, are now a must, especially during a time of social distancing and remote working.
This problem continues to persist for years now and it is still a current challenge. This is primarily due to the fact that the industry as a whole is experiencing a time when labor is expensive and competitive. Moreover, this problem dates back to the 2008 recession—a time when 600,000 workers lost their jobs in the construction sector.
Since then, people actively avoid entering the construction workforce as it is perceived as dangerous and difficult. Nowadays, the construction sector has its eye on recruiting workers from Generation Z.
Industry trends is just one proof of changing times and the need to adapt. As we now face the reality of a fluctuating economy and shifting project productivity, let these commercial construction trends be a guide on what to expect and implement
About Triple Crown Construction:
Triple Crown Construction is a Partner-Grade provider specializing in pre-construction, commercial construction and hospitality renovation. This allows you to focus on driving revenue while we focus on your construction projects.
Since 1991, TCC has provided expertise in delivering successful turnkey solutions to its clients across the nation. Efficient processes and cutting-edge technology has enabled TCC to maximize client value while minimizing project pitfalls. A core team of Estimators, Project Managers and Superintendents provide guidance and support to a network of TCC Certified subcontractors. Nestled in picturesque Frederick County, MD, TCC is an active member of the community, routinely participating in local events and charity programs.
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Partner-Grade is a shared commitment to and investment in our Client-Partners’ interests. We offer confidence through knowledge in the construction process, turnkey projects and a solution-oriented approach. Our brand virtues of efficiency, clear communication and providing an excellent customer experience are at the core of every project. Can you afford to work with a firm that’s not “Powered by Partner-Grade?”