The construction industry is always evolving and never more than in the last few years. The COVID-19 pandemic resulted in ongoing challenges that contractors continue to face. The following are construction trends that should continue in 2022.
Construction Trends One: Labor Woes
Labor shortages were only compounded by COVID-19. Studies show that at the beginning of the pandemic, the construction industry lost 1.1 million plus jobs in March and April of 2020. With 2021 adding only 160,000 jobs, the construction industry workers remain significantly lower versus pre-pandemic levels. However, construction unemployment was reduced by half over the course of 2021, starting at 9.4% in January and falling to 5.0% in December. The lack of labor is a construction trend that contractors will have to face for the foreseeable future.
Construction Trends Two: Material Issues
The cost of softwood lumber, particleboard, and gasoline have more than doubled. Other material, such plywood, asphalt, and iron and steel scrap have seen significant price increases. Research from November 2021 report that new construction costs, excluding capital investment, labor, and imports were up 20.54% from 2020. Additionally, it indicated that the construction materials special index increased 34.65%, while final demand construction rose 12.27%.
Construction Trends Three: Delivery Times
Costs are not the only increase due to the supply chain crisis. Material lead times are two to three times longer than pre-pandemic. This problematic situation will continue into 2022 as demand for materials stays strong. Contractors will need to order material sooner than in the past to assure timely delivery and continue to monitor rises in material costs.
FI•CON has faced challenges in the past and has proven itself to be a reliable construction and fabrication partner to our customers. We focus on being flexible to provide solutions to a changing and challenging industry. Our combination fabrication and construction services, means we have the experience to tailor projects to each customer’s needs. Contact our experienced team today to discuss your next project at ficonusa.com or (386) 364-7647.