Did you think the supply chain issues the construction industry faced in 2021 would magically resolve themselves this year? Some predict many of the materials we had difficulty acquiring last year will go forth and multiply, creating another construction industry issue: hoarding.
Contractors will pay more for materials and stockpile what they can get. Construction competitors will be divided among the haves or the have-nots.
Some of the construction industry trends predicted for 2022 are:
Continued supply chain backlogs
In January, international construction insurance CSO Doug Lyall reported more than 90 percent of builders said there were shortages of appliances and lumber, while 90% had shortages of plywood and 87 percent said they had shortages of windows and doors.
What’s the solution? Cultivate backup suppliers in North America. And instead of “hoarding,” which sounds bad, you may be applauded for “creating reserves.”
In 2021, three-fourths of construction-related companies suffered a cyber incident. Look for cyber insurance premiums to increase 20% this year. Cyber insurance was once a luxury; it’s going to become a necessary reality.
Increased use of technology
Drones, bots, and self-driving vehicles will be technologies driving the construction industry this year. And continued software development and utilization will make project management more efficient than ever.
Alternative materials are looking much better than before. One of the reasons is, they are better. Cross-laminated lumber (mass timber) offers notable fire resistance. Concrete reinforced with fibers is sustainable, flexible, and more durable than traditional concrete.
On the downside, alternative materials cost more. You and your clients must do the math to determine if the investment is worth it.
Homeowners may spend $400 billion by 3Q2022 on home improvement projects. But rising costs – labor and materials – could hinder the growth of residential repairs and renovations.
Uncertainties management and business development
“The construction industry is well-positioned for 2022, but… Organizations that can plan their way around the uncertainties are better positioned to manage their risks and come out on top,” said Lyall.
Construction Monitor data analytics can take your company from hoping-it-all-works-out to making it happen. Learn how to use building permit information to build business in 2022. Contact Construction Monitor.