Construction Industry Sees Decline in Commercial Investments

commercial construction

The recent construction industry slump in nonresidential structures is blamed on decreased demand, labor shortages, and the rising costs of materials. During 3Q 2021, project owners began postponing projects. The spending dropped most noticeably in lodging and public safety construction industry projects.

Other Factors Impact Temporary Construction Industry Nonresidential Slump

There are other factors at work…Pandemic-induced behavior changes have undermined several commercial real estate segments…Since March
2020, construction spending in the lodging and office
categories has declined substantially…

The Associated Builders and Contractors’ GDP (gross domestic product) report indicated investment in the third quarter of 2021 fell 7.3%. Datacenter construction has increased, and it is notable that even though datacenters fall under the “office space” umbrella, the construction industry decline in office projects was solid. Still, this two-year drop is not expected to continue.

Architecture billings are up; always a sign of future investment. Other construction industry projects remain strong in the healthcare, e-commerce, and educational facilities sectors. Material prices are expected to stabilize. It is anticipated that hesitant construction companies will be more likely to move forward on delayed commercial structure projects.

Five 2022 Commercial Building Statistics You Need

According to Dodge, construction starts will increase 6% in 2022. The “main driver” will be residential construction.

Construction industry commercial building statistics are important because commercial construction increases job opportunities, local materials’ costs, and creates business opportunities. The Build Back Better Act will address the backlog of projects, including:

  • Bridges
  • Broadband communications
  • Ports
  • Railways
  • Roads
  • Transit facilities

That could lead to a 5.5% construction spending annual growth rate by 2023.

Construction Monitor uses building permit information for construction industry companies that want to be competitive in a dynamic market. If that’s your company, we have the commercial construction information you need to make marketing strategies for the new year:

  1. How much – Value
  2. What – Project specifics
  3. When – Project dates
  4. Where – Your area of interest (community/city/state)
  5. Who – Contact information

This could be the year you make more money doing what you were born to do: build a business. Learn more. Email, call, or contact Construction Monitor.

Institutional and Commercial Construction Services

construction services

Institutional and commercial construction services require heavy-duty, specialized equipment. Unlike infrastructural and industrial jobs, commercial construction stakeholders are usually interested in profit.

Commercial Construction Services: More Than Construction

Institutional and commercial construction services encompass everything from the building to maintenance, upgrading, and renovating large structures. Contractors and builders are usually employed by private companies. With the unprecedented economic swings of 2020, construction predictors are best-guesses. But from 2014-2019, commercial renovation as a construction services industry rose 8.9%.

Five Ways Institutional, Commercial Construction Use Big Data

Do you know how the term “big data” came about? The concept is based on such voluminous information – data – that you can’t begin to comprehend it, let alone use it properly. It’s that big.

The advantages of using big data don’t occur naturally. You must first set clear business goals. Then you need to understand the power of data analytics. Finally – and most important – you need to learn how to put construction statistics to work.

Here are five examples of institutional and commercial construction services’ ways to use big data:

  1. Organization – Data can give you GPS coordinates, vehicular traffic information affecting the job site, and supplies/machinery routing to lower fuel costs and increase operational efficiency.
  2. Prefabrication – Large modules can be designed onsite and prefabricated elsewhere.
  3. Risk management – Commercial and industrial construction companies may have fewer-per-year projects than most construction services. This makes project pricing, staying within budget and on-time even more important. Big data can compare the subcontractors’ and suppliers’ dependability.
  4. Simulation – Many mistakes can be avoided. Frank Lloyd Wright said you can use an eraser on the drafting table or a sledgehammer onsite. Big data can reduce mistakes by comparing site conditions and limitations.
  5. Tracking – Losing a hammer is no big deal. Losing a bulldozer is a problem. “No other industry spreads its assets out geographically like the construction industry,” says project management analyst Rachel Burger.

Statistics for Targeted Marketing Data

Our customized building statistics can give you targeted, area-specific data that cookie-cutter construction software programs can’t. Contact Construction Monitor to learn more.