Take a drive around your neighborhood or through your nearest major city, and chances are you’ll see and hear the sights and sounds of construction. From two-story residences to 100-story skyscrapers, buildings are going up everywhere. While the ongoing activity can be a woeful distraction, the results will be well worth the trouble. Our cities and towns are getting bigger, taller, and more advanced, and that’s good for businesses, individuals, and society in general.

However, with the rapid increase in demand comes equally swift changes to the dynamics of the industry. Sure, most construction industry professionals will say the nature of their work is the same as it’s always been – and they’re correct – but given how much has changed in general over the past few years, it’s safe to say construction has not come out unscathed.

With this in mind, let’s take a look at the construction industry outlook for the remainder of 2022:

Growth of the Construction Industry

Growth

As mentioned in the introduction, the construction industry has experienced rapid growth in recent years. Experts anticipate this upward trend to continue for the rest of the year. While residential construction is expected to take a slight dip in the months ahead, it will be quickly balanced out by an uptick in nonresidential buildings going up in urban cores and town squares across the United States. This shift will be the result of reduced home sales compared to 2021.

Bids

While the number of active building projects has skyrocketed, so have the number of general contractors, subcontractors, and suppliers trying to get in on the action. This will put increased pressure on existing businesses to optimize their bidding process. For many, the answer will likely come in the form of construction bidding software, which helps these and other industry professionals be more responsive and reactive when working to win new projects. However, streamlined bids courtesy of technology will be available to everyone, leveling the playing field going forward.

Disruptions

As alluded to earlier, the construction industry remains in the midst of a significant supply shortage. Stemming from the global pandemic and made further complicated by the great resignation, supply chain disruptions are expected to remain a problem for the next six months. However, most experts predict the global supply chain will be back to where it was before the pandemic, probably sometime before the next holiday season.

Connections

Connections

Construction projects consist of several different groups of professionals working together. While this approach remains where everyone focuses on a specialized part of the process, the successful construction of a new building comes down to all parties working in unison, with little to no deviation. That’s doable in theory but difficult in practice. Fortunately, more industry professionals are turning to digital technology to keep everyone on the same page. Taking center stage is construction management software. Experts anticipate 2022 to be the year when everyone from the developer to the general laborer is familiar with how to put management software to use.

Consolidations

Thousands of businesses closed during the pandemic. While many business owners managed to revive themselves once the worst was over, others were either unable or unwilling to continue. In construction, this will result in a massive wave of mergers and acquisitions in 2022. Expect many general contractor companies to join forces in the coming weeks and months, with the same happening to subcontractors. However, a boom in mergers and acquisitions should level off by the end of the year.

Talent

The pandemic led to millions of workers getting laid off, with thousands of skilled construction professionals among them. While many have returned, companies remain stuck trying to fill critical positions. Most experts predict the worker shortage will affect construction companies for the next six months.

Safety

Safety

With new workers being brought in to replace those who never returned, construction businesses are working hard to get them properly trained and educated. Job site safety will be a significant concern, as construction sites are notoriously dangerous. Insurance underwriting may adjust accordingly as more companies hire inexperienced employees to take on risky tasks around the job site.

Conclusion

Regardless of various setbacks and hurdles, the construction industry remains red hot. Barring any unexpected disruptions, experts anticipate the same for 2022.

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