Commercial Construction Industry Trends in 2023
Posted on: January 30, 2023 in ConstructionShare:
2022 was a difficult year for construction in the United States. The year brought rising interest rates and increased inflation, but contractors remained optimistic through the unstable economic conditions. Many construction leaders and organizations are recovering from the COVID-19 pandemic, which also contributed to the industry’s rocky atmosphere.
Inflation affected nearly every industry in 2022, including the commercial construction market, with material prices increasing. It was also challenging to attract new workers into the industry. Many construction leaders wonder what’s in store in 2023, and while top construction economists believe there may be some similar challenges this year, there is still room for hope for positive growth.
Emerging Construction Choices in 2023 and the Driving Forces
The construction industry will continue to evolve in response to various factors, including changes in legislation, housing shortages, environmental impacts and global health concerns. Below are some of the commercial construction trends that will shape the construction industry in 2023.
1. Labor Shortages
Labor shortages in the construction industry aren’t anything new, and it looks like more of the same will occur in 2023. While the fact that fewer young people are entering trades such as construction has a lot to do with the labor shortages, it’s also exacerbated by the increasing number of construction projects and increased spending. As a result, employers will likely have to pay workers more to add them to their workforce.
Many construction jobs are open, but not enough people are willing to fill the spots. With the increase in demand for construction projects, the labor shortage could have a significant impact. In fact, Associated Builders and Contractors estimates that construction leaders need to hire an additional 590,000 workers on top of the usual hiring pacing to keep up with demand going into 2023.
2. Material Costs
The COVID-19 pandemic disrupted construction projects across the globe, though it looks like the situation is making a positive turn. However, labor shortages and supply chain issues have made it challenging for construction leaders to get the necessary resources to start and complete projects.
One of the trends emerging from the pandemic has been the increased cost of critical construction materials. Due to sourcing challenges, it’s no surprise that construction leaders have encountered increased prices.
The good news is that relief seems to be near in 2023. Experts agree that 2023 should ease the cost of materials, with numerous signs of construction-related inflation looking to become less intense during the year.
3. Environmentalism
Every year, there’s an increasing focus on green building as consumers and businesses become more eco-conscious. The trend of environmentalism will likely grow in 2023, making it beneficial for general contractors, engineers, architects and developers to work together to create construction projects that offset or limit the negative impact on the environment.
Things that will be in demand in 2023 and beyond until the industry catches up include using eco-friendly or sustainable materials, creating their own energy and controlling or reducing carbon emissions.
One factor that can help construction leaders meet the demand for environmentalism in the industry is the growth and development of technology, reducing the reliance on paper and shifting focus to greener practices in the office.
4. Technology and Digital Transformation
In 2023, it’s expected that construction companies will get better at adopting new technology to aid in projects. For example, some companies have already turned to drones to inspect buildings and survey sites. Businesses have even enlisted the help of robotic exoskeletons to reduce worker fatigue and 3D printers to streamline building processes.
Many also expect construction leaders to adopt digital technologies to improve communication and collaboration between parties. Construction companies are already utilizing construction management software, and many others are expected to follow suit, allowing teams to send and receive documents, update budgets and share drawings from anywhere in the world.
There’s also the potential for enhanced 3D modeling technology for designers to show their visions to clients. With improved imagery and user experiences, 3D designs allow clients to virtually walk through the mockup, making it easier to identify problems sooner and improve collaboration. The trend with technology and digital applications is anticipated to grow in 2023 and the coming years.
5. Prefabrication and Modular Construction
Prefabrication and modular construction are old trends expected to reemerge in 2023. Regarding modular construction, most of the project is built off-site before moving to the final destination. Prefabrication works similarly and involves assembling or making components in a different location and attaching them to the build at a later date.
Both options target transmission and waste-related emissions typically associated with the construction industry. These processes also allow building projects to proceed more efficiently, preventing overrunning budgets and errors. Some experts believe that construction companies will shift toward modular construction and prefabrication to prevent these problems and increase sustainability.
6. Supply Chain Technology
Many of the trends in 2023 are focusing on reducing weaknesses within the construction industry, which gives affected individuals a competitive edge. Some construction companies are interested in supply chain technologies to reduce expenses regarding surplus items or stockouts. Some of these high-tech supply chain platforms utilize forecasting features, allowing construction leaders to react to potentially negative trends in time, helping them remain stable rather than experience significant consequences.
These technologies can also help reduce or eliminate manual tasks, such as sending or filling out invoices or capturing weigh station receipts. The result helps improve focus on other tasks and keep track of goods as they move to the destination.
Stay on Top of Emerging Trends With Maintco Corp
Staying up to date on the latest construction trends can be challenging with all the changes the industry is experiencing. Maintco Corp can help you streamline all your construction needs in 2023. We have over 25 years of success as a commercial construction company in LA, providing cost-effective solutions for numerous construction projects.
We offer many construction services, including pre-construction, scheduling, budgeting, warehousing and remodeling. We aim to provide superior project management and quality service to our clients, helping create a mutually profitable relationship. Our work is high-quality and efficient, helping you achieve your goals and driving success. Contact us today to learn more about our services and how we can help you with your construction projects in 2023 and onward.