The construction business is one of the core drivers of our economy. That is because commercial construction is responsible for building our offices, shopping centers, roads and our lives as we know it. This article points out top 6 issues facing commercial construction industry today:
Worker Safety
Employee safety has always been a significant issue in the construction industry. In addition to OSHA compliance, businesses also boast about the least number of injuries experienced. To keep workers from harm’s way while on the job is a challenging part of the construction industry. The construction business is now implementing new safety features to keep all staff members free from injury while on a job. Companies that can alleviate safety concerns will attract better quality workers and more jobs.
Technology Use
The adaption of technology in the commercial real estate field is slow. If the sector were to adopt technology, there could be many improvements and realized efficiencies in the industry. For instance, drones are useful for watching the area above and ensuring all staff is safely performing jobs. Another valuable piece of technology that the commercial real estate industry should adopt is a virtual or augmented reality to envision how the finished project will look.
Labor Shortages
Labor shortages have been in existence in construction since the US economy went into recession in the late 2000s. Many employees left their positions voluntarily while several others were let go by their companies. Regardless of the US economy being better than it was before, it appears the labor shortage will continue for this sector of the economy. Many in the field are finding it challenging to recruit and retain new staff members for the jobs. Innovative managers are thinking of creative ways to upscale the open positions. Many are resorting to offering incentives and training to those who would like to work in the field.
A Decrease in Productivity
The decrease in productivity is affecting many job sectors, but it is having a significant impact on the commercial construction industry. The field has seen a decrease in productivity and an increase in the time it takes to finish a project. In part, the labor shortage issue affects the overall production in the field of construction. If there are fewer employees on a job, then it will take a longer time to finish the work. Production incentives could become a valuable form of completing commercial construction tasks more efficiently.
High Material Costs
Another thing that has a significant impact on the construction industry is material prices. The costs of materials continue to rise year after year. The supervisors of a project will need to focus on the budget and save project costs when and where they can. They can then use the savings elsewhere to offset other expenses. The costs of materials are not expected to go down any time in the near future. Construction safety and material costs can lead to slower completion time for any project. When the budget calls for it, the projects can be value engineered aggressively.
Environmental and Sustainability Issues
There are more issues with sustainability facing today’s construction crews. These issues create obstacles for the field. As more construction site supervisors are creating sustainable projects, there seem to be other areas that will follow. Many in this field must develop sustainable projects to receive more jobs in the future. As the issues with climate change are impacting every area of the economy, the construction field is no stranger to creating sustainability. Many who are employing construction crews want to do their part in creating an environmentally friendly building.
While the industry combats the 6 issues facing commercial construction as a whole, things seem to be picking up – although not to pre-pandemic levels, but we’re optimistic!
