Post-COVID construction industry trends
The 2020 recession triggered by the Coronavirus continues to have an impact on the construction industry. 2022 will still have its share of challenges, but the construction industry seems ready to seize new opportunities for growth as the effects that the pandemic has had on the economy begin to wane.
The construction industry has increased its investments in digital technologies in preparation for a move toward more connected construction capabilities. These types of technologies can help the industry support new enterprises including the building of smart cities and climate change programs as well as helping to boost operational efficiencies, reduce costs, and improve margins.
2022 is looking like it’s going to be a turning point for the construction industry with five key post-COVID construction industry trends to watch.
Potential problems that still linger
Even as the construction sector continues to recover in the aftermath of the COVID pandemic, there are still issues and challenges that will continue to affect how the industry recovers and moves forward in the future.
Supply chain disruptions are expected to present one of the biggest challenges to construction in 2022. Supply chain issues were expected to stabilize in 2021 as global production of supplies normalized.
Unfortunately, supply shortages due to the pandemic still persist, affecting key materials including lumber, paint and coating, aluminum, steel, and cement. The result? Sharp increases in the prices of critical construction materials plus delays in project completions.
In addition to supply chain issues, many companies continue to have trouble hiring new talent as well as retaining talent which results in project delays and cancellations, scaled back projects, and an overall inability in being able to respond to the needs of the market.
As the construction industry makes advances integrating digital technologies to boost productivity, efficiency, and safety, the lack of qualified candidates with the skills needed to move the industry into the future is going to present a challenge.
What is your position?
The good news is the construction industry is positioned for strong growth due to the strong market for residential housing, despite the supply chain issues and the rising cost of materials.
As the construction industry moves forward post-pandemic, the trend towards “connected construction” will help the industry open up new value streams as engineering and construction firms realize the advantages of technology that can bring together assets, people, processes, and job sites into one platform.
Increasing digital investments through construction industry mergers and acquisitions have helped firms boost internal operational efficiencies, reduce costs, and improve profit margins.
With all of the challenges facing the construction industry, post-pandemic, it’s important to have an accounting firm on board who can help your company develop and execute a financial strategy that will reinforce your financial details.
At GYL CPAs and Advisors, we’ve put together a team of professionals with the expertise and experience to handle all facets of accounting for construction firms. We understand the challenges that are currently facing the industry, and, working together, we will help provide solid and innovative solutions to those challenges.