2022 will continue the string of years that present challenges the construction industry faces. The following are the top issues:
Supply Chain Delays & Costs
Supply chain issues continue to be a major issue because of production plant shutdowns and transportation delays caused by the pandemic. Contractors have had to deal with increases in transportation, materials, and shipping times. A recent Dodge Report revealed that 98% of contractors indicate a moderate to high business impact from material cost fluctuations.
Aging Workforce
The U.S. Bureau of Labor Statistics sited that the median age for a construction worker was 42.9 in 2020. The aging workforce contributes to the ongoing labor shortage in the construction industry. Training high school students for trades could help alleviate this problem. However, there are fewer trade schools available to train the emerging workforce in essential skillsets adding to the issue.
Data Management
In 2021, the JBKnowledge Construction Technology Report found that 62.4% of construction professionals are using mobile devices for daily reporting, 60.2% for photo/video, and 43.8% for project management. Further, it indicated the factors hindering the implementation of new tech were employee resistance and costs. To streamline the integration of vast amount of digital and hard data, construction companies need to hire staff able to implement software.
The Ability to Adapt
It should be obvious that the pandemic continues to change the way contractors have to do business today. Construction companies must be flexible to adjust to new challenges. For example, contractors and project managers must be able to work remotely when site visits are not an option. Platforms for online collaboration with teams need to be a seamless option in lieu of in-person meetings.
Gundlach Champion has over 125 years of experience dealing with the challenges in the construction industry to assure a successful project for our clients. The GCI team brings over 350 years of combined experience to every construction project, from new buildings to renovations. To discuss your next project, contact us at gcfirst.com.