As the commercial construction industry continues to grow, so do its challenges. Industry professionals face opportunities and setbacks, including construction put-in-place growth, labor shortages, supply chain interruptions, jobsite safety concerns, and construction technology. Nevertheless, steady management and careful investment in the future can help companies navigate the challenges and enjoy the perks of today’s market.
NOVAS Construction is a leading commercial construction company in Virginia, Washington, DC, and Maryland. Our team is licensed, insured, and certified to help us provide the highest level of design/-and-build services possible. From start to finish, we provide clients with all the information they need to ensure their project remains efficient and on budget.
Below, we discuss several industry trends in further detail:
Construction Put-in-Place Growth (CPI)
The construction put-in-place (CPI) growth rate has been on the rise in recent months according to the latest figures from the U.S. Census Bureau. In May, this rate stood at 6.7%, up from 5.9% in April and 4.5% in March. The growth is good news for the construction industry, which has struggled in recent years. The housing market crash of 2008 hit hard, and the industry has yet to reach its pre-recession levels. Nevertheless, the latest CPI figures suggest a healthy future for commercial construction.
Currently, commercial construction is also on the rise. In May, the value of commercial construction put-in-place was up 7.1%. This factor is indubitably driving the CPI growth rate.
This rise in commercial construction likely comes from increased business confidence. With the economy rebounding from the pandemic, businesses are more willing to invest in new facilities and expansion projects. As a result, the construction industry should see more work.
Construction Labor Shortage
Many industries are experiencing labor shortages, including commercial construction: despite the growing demand for their services, construction companies are struggling to find qualified workers. This scenario, in turn, is driving up wages and putting pressure on companies to complete projects quickly.
Although the “Great Resignation” has lasted several months, managers are still struggling to fill positions while maintaining project timelines. Contractors must learn how to attract the best candidates, recruit them, and retain skilled workers.
The recent Infrastructure Act also affects this ongoing construction industry trend. Ideally, it will encourage a workforce to the construction industry. Still, high-quality training and learning opportunities will be essential to retaining these workers.
Material Costs & Supply Chain Shortages
Also, a strong demand for construction materials has placed intense pressure on the supply chain. Raw materials come at a high price these days, and construction companies are struggling to keep costs down. For example, the price of lumber has more than doubled since last year. Prices for other building materials, such as steel and concrete, are also on the rise.
A combination of factors led to these shortages, including the increased demand for new construction projects and delayed delivery of shipments from overseas. To cope with the rising costs, many contractors are cutting corners or using low-quality materials, which can result in subpar workmanship. In some cases, developers even put projects on hold until the prices come down.
Jobsite Safety
Jobsite safety is another critical concern for the commercial construction industry, though an ongoing one. Employees face a greater risk of injury or death if they lack training and proper safety equipment.
However, this situation is exacerbated by the labor shortage. A shortage of skilled workers and an increase in trench-related fatalities has led the U.S. Department of Labor’s Occupational Safety and Health Administration (OSHA) to launch enhanced enforcement initiatives. These factors increase the competition for talent wages for those with the necessary skills.
Construction Technology Adoption
Construction technology also affects the way commercial construction projects are completed. New software and tools help architects and engineers to design more complex buildings. 3D printing allows these professionals to create prototypes of building components for testing purposes.
For instance, in southwest Virginia, a 3D printing construction company is utilizing a commercial 3D printer to build several residential communities. According to Insider, this project in Virginia’s evolving tech hub is set to take approximately 5 years to complete, which is faster and more affordable than traditional construction.
Construction companies increasingly turn to tech solutions for help with streamlining their operations and improving efficiency. From project management software to drones and 3D printing, the new tools help construction firms get the job done.
Streamline Your Commercial Construction Project with NOVAS Construction
As the commercial construction industry continues to grow, further innovations and challenges will emerge. All those in the construction sector must stay up-to-date on the latest news and trends. They can do so with NOVAS Construction. We help you make informed decisions about your business and ensure that you’re able to take advantage of opportunities as they arise. Keep an eye on this space for more commercial construction news.
Schedule a consultation with NOVAS Construction today. Call (703) 731-7566 to receive a free estimate on your project.