Several studies and analyses conducted by the construction sector predict that the industry will continue to expand. It is projected to grow at a compound annual growth rate (CAGR) of 4.9 percent to reach $1,804.8 billion by 2023. Despite this, there is still a general feeling of optimism in the air. In a construction sector that sees continuous growth and a good outlook, what could be driving construction leaders up at night? The following are the most pressing problems that will confront the construction sector in 2021:
Qualified workers are scarce
The construction sector deals with a significant problem: there aren’t enough qualified employees to keep up with the industry’s increasing demand. The younger generation is being steered away from vocational trades and toward higher education. Many of the advantages of a career in construction are not being communicated to millennials, and a large portion of the current labor is approaching retirement age. You can do things as a contractor and a small company owner to assist with this issue while industry professionals attempt to address it on a national level.
- Serve as a mentor. During the summer months, high school students and recent college graduates are looking for employment opportunities. Always be ready to promote your industry to someone who might not have previously considered a career in construction. Suppose one of your most exemplary employees has shown an interest in the business side of the building. In that case, you should mentor an already competent worker to teach them the ins and outs of construction project management or construction company ownership. Mentorship can also be used for current skilled labor.
- Make use of a construction staffing agency. Construction staffing companies can provide you with qualified employees ready to work when you need them. Prescreening candidates are handled by the agencies, which saves you time and allows you to hire suitable employees more rapidly. Typically, a staffing agency will also pay all human resource expenses associated with the job, including any workers’ compensation insurance for those individuals who work for them. You can also look into investing in industrial marketing management. For industrial companies looking to expand, executives-as-a-service companies can provide objective, hands-on strategic and tactical marketing advice in a matter of days.
When things go wrong on a venture, it is usually always a breakdown in communication somewhere down the line. Technology is the solution to your communication difficulties. Because two-thirds of Americans possess smartphones, there is a strong possibility that nearly everyone on your project has one as well. When email, text messaging, and construction technology applications are used on a project, information can be sent instantly to all parties involved in the project in real-time, reducing the downturns and potholes that may result from a communication breakdown.
Subcontractors who are not dependable
Many contractors have difficulty locating dependable subcontractors for their projects. If you’re in a bind and need to find a replacement, check with the supplies customers and subcontractors with whom you do business consistently. They will know everything and may even be able to provide a fantastic suggestion for a substitute. In addition, you may seek recommendations from other subcontractors with whom you have previously worked. Before hiring a subcontractor:
- Always verify their licenses.
- Make sure that they have public liability insurance.
- Ensure that your business is included as an extra covered on their insurance policy.
Regulations that constantly change
Rules and regulations are continuously being revised and modified at all levels of government: the federal, state, county, and even the local level. What is the best way to keep on top of all the details? For the latest information on changing laws that impact your company, subscribe to blogs and industry magazines. Create an account, and fresh blog articles will be sent to your inbox regularly. Keep your inbox from becoming cluttered by having these industry-specific communications sent to a particular folder in your email inbox. Make time each day to catch up on all the information you need to remain compliant by setting aside 10-15 minutes every day.
A constant source of worry for the construction business is the scarcity of skilled labor and the high cost of raw materials, which have been the most persistent adversaries of most construction firms for decades. There are measures that businesses can take to ensure that they survive these difficulties, but there is also a new and more frightening issue that they will be unable to address on their own.
Ultimately, innovation plays a significant part in surviving these challenges, and businesses should begin to embrace innovation. Labor scarcity problems (via appropriate scheduling), poor productivity rates, safety concerns, and other concerns may be addressed by using construction management software (for example, in the construction industry). As a result, begin to explore digital solutions to assist your company in overcoming building difficulties.