A new year is here, and it’s already throwing plenty of curveballs. The construction industry has spent the last two years dealing with the upheaval that the pandemic has caused. Looking ahead to 2022, there are some challenges the pandemic has caused that the industry is still facing, as well as new challenges emerging, but there are plenty of positive trends in addition to the negative ones.
Here at WiseCap, we help business owners finance and find the equipment they need to thrive, so we have a vested interest in seeing you and your business succeed. We put together this forecast for trends the construction industry can expect to see looking ahead to the rest of 2022. Let’s get into what to expect in the construction industry this year.
Supply Chain Issues
Issues within supply chains have been trending since the beginning of the pandemic. The material delivery lead time is double, triple or even higher than pre-pandemic levels. Because demand for materials is as strong as ever, and with more supply chain issues caused by the new Omicron variant, these lead times will continue in 2022. These wait times lead construction businesses to get more creative to bridge the shortages and more and more are turning to buying used equipment to meet their needs.
The shortage of construction equipment and materials has led to correspondingly high prices. While prices for some materials had begun to level off towards the end of 2021, it’s expected there will continue to be a roller coaster in material costs for the foreseeable future.
Skilled Worker Shortage
There is high demand right now for skilled labour in the construction industry. This means that finding and retaining skilled workers will be competitive and expensive. New technology is creating a need for more educated workers who can interpret and manage the data being produced.
There is a growing movement towards targeting women and younger workers to fill this demand. Women still only make up a small percentage of construction industry jobs. In addition, younger workers have been shying away from these roles due to a negative perception of attending trade schools in the past. However, the pandemic has created a shift in perception in alternative career paths, allowing the construction industry to market the abundant opportunities for growth in the industry to a new generation.
Impacts from Technology
Construction site guidelines have constantly altered with the changing COVID safety regulations with a continued emphasis on strict safety protocols and cleanliness. New devices with features that identify common safety issues are becoming increasingly common to help reduce those issues. There is growth in wearable items like headsets that minimize the impact of noise pollution while keeping workers in tune with their surroundings. We’re also seeing more wearable smart vests and boots that monitor workers’ vitals and movements and notify other workers if someone has fallen, and that’s just the beginning. Drone use is increasingly common to conduct site surveys and inspect bridges. Robots are being used to handle tasks that are strenuous and repetitive, like hanging drywall and laying bricks.
Construction management software that is comprehensive is and will continue to be a critical tool for efficient operations. Having a robust software system that handles RFIs, compiles data, helps with budgeting, monitors inventory, stores documents, shares files with mobile teams, and includes payroll and HR is going to be essential for staying competitive.
How Can Construction Equipment Leasing Help
While plenty of challenges due to the pandemic and other factors remain for those in the construction industry, there is plenty to be excited about and look forward to as well. When you’re choosing a financing company, we want to work with you to find the best solution for your business, whether that’s equipment refinancing or commercial truck loans. Our WiseCap experts are here to help you grow and expand your business. Get in touch with us to discuss your equipment financing needs, and we’ll be happy to work with you and find an excellent solution for you and your business so that you can tackle the year ahead with a thriving construction business.