Labor Shortage Among Top 5 Construction Trends for 2022
The new year is just getting started, but trends in the construction industry are already taking shape. While most construction companies should see increasing profits and growth, there are a few lingering disruptions that will shine through from the past year.
So, what can construction contractors expect this year? Here are five construction trends you should be on the lookout for in 2022.
Top 5 Construction Trends for 2022
- Construction Growth. According to a report by ING Bank, total construction spending increased 8.1% by the end of November 2021. The increase in overall spending should carry over into both residential and non-residential sectors during the first half of 2022. As the year continues, growth in the construction industry should receive an additional boost as billions of dollars from President Biden’s Infrastructure Investment and Jobs Act begin to flow into the market. The combination of these two factors alone will provide construction contractors the opportunity to take on new projects and grow their bottom line — that is, of course, if they’re able to attract and hire tradesmen and tradeswomen to fill skilled jobs. Firms like PeopleReady Skilled Trades that specialize in skilled staffing can help contractors stem the labor shortage (more to come in point five).
- Raw Material Costs & Supply Chain Issues. Along with new opportunities, many of the same problems that existed for construction contractors in 2021 will persist throughout 2022. It’s no surprise that material costs will continue to be sky-high. According to a recent article by Business Insider, the cost of raw materials, like lumber for instance, has tripled since August 2021. Along with rising materials costs, the U.S. Chamber of Commerce data cites that 95% of contractors surveyed are experiencing at least one product shortage, up 24% year-over-year. Just as vacant skilled jobs are causing problems in the industry, these shortages and supply chain issues will continue to impact construction contractors, making it challenging for them to complete projects on time and on budget.
- Embracing Technology. The pandemic has changed nearly every industry around the globe. Specifically, as we look at the construction industry, we’ve noticed that the pandemic has actually helped fuel technology innovation. Prior to the pandemic, virtual meetings and virtual construction site visits were unheard of in the industry. Now they’re commonplace. On the safety front, some construction companies have their tradesmen and tradeswomen use wearable devices to alert them of potential hazards on job sites. To do more with smaller teams, some construction contractors are even using drones for mapping and inspecting bridges. They are also using Building Information Modeling (BIM) and Augmented Reality (AR) to help visualize projects and streamline the entire construction process. In 2022, we suspect we’ll see more contractors embracing and using technology in new and innovative ways.
- Smart Cities & Green Energy. Two segments of the construction industry showing signs of explosive growth are smart cities and the green energy market. Smart cities are large-scale projects focused on improving the efficiency of infrastructure and quality of life for citizens through innovation and sustainable technology. Companies like Cisco, IBM and Honeywell are some of the key drivers investing in this already half-a-trillion-dollar market, according to MarketWatch. The U.S. federal government is also looking to invest approximately $550 billion in infrastructure, including $7.5 billion for zero-emission buses, ferries and trains as well as $7.5 billion in electric vehicle charging stations across the country, according to a CBS News report. Then there’s solar: The Energy Information Administration (EIA) expects 21.56W of utility-scale solar to be deployed in 2022. That increase means more skilled jobs, following a 2021 trend. In fact, between October and November 2021 alone, PeopleReady Skilled Trades reported over 300,000 solar jobs were available.
- Labor Shortage. With baby boomers retiring from the construction industry in large numbers, and stigmas associated with construction jobs keeping the next generation from replacing them, it’s estimated that the construction industry will need 2.2 million workers to meet demand just in the next three years alone, CBS News reported. According to the U.S. Chamber of Commerce, 91% of commercial contractors report moderate to high levels of difficulty finding skilled labor. Although these numbers are staggering, it’s not all doom and gloom. Companies like PeopleReady Skilled Trades specialize in skilled staffing and can help you find the tradesmen and tradeswomen you need – even in a severe labor drought.
If you’re looking to stay ahead of the curve and find workers for your next projects, PeopleReady Skilled Trades is ready to help. Since 1987, PeopleReady Skilled Trades has provided skilled staffing for construction contractors across all sectors of the construction and renewable energy industries. PeopleReady Skilled Trades welcomes the opportunity to connect your company with the tradesmen and tradeswomen you need to complete your skilled jobs on time and on budget.
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