With the ever-changing dynamics of the construction industry, keeping up with new trends is essential, and can help your business save money, improve operational efficiency, and ultimately expand in a competitive market. 2018 promises a multitude of new trends, specific to technological developments in the construction sector.
Here we will evaluate how to revolve the new year’s industry trends into business opportunities, and address critical facets your can expect to see in the upcoming months.
Materials Are Going to Increase in Price
Material costs have increased annually, and that’s not going to change in 2018. When budgeting for necessary materials, consider the fluctuating market, and allocate funds accordingly. Where can your company save money, or invest elsewhere in offsetting the increasing cost of materials? Look especially for places where new technology can reduce costs. For example, you may be able to utilize smartphone or tablet apps that don’t cost very much or are even free to use.
Another way to keep your materials cost in check is to review your past expenses in regards to over-buying. If you can bring your orders down closer to meet your actual needs, you’ll be able to both save money and make better use of your storage space since you won’t have a lot of leftover materials.
Industry Growth
Market and consumer analyses for 2018 anticipate a minor, but significant growth regarding various facets of the construction industry. Several positive, economic factors, including moderate job growth and the gradual increase of interest rates, predict a promising year for the construction industry’s long-term expansion. However, these predictions and analyses are in part dependent on future tax reforms and the institution of federal/infrastructural programs.
Ultimately, analysts predict growth variability in different sectors of the construction industry, acknowledging some project types, such as residential building, will register gains while others might remain momentarily stagnant. As a whole, the industry is predicted to witness a 3% growth, which might increase both job and business-to-business competition rates.
Remember that just because the competition is higher in a slowly growing industry setting, business prices do not necessarily need to be lowered accordingly. Regardless of the industry, when you lower prices in a competitive market to attract new customers, you’re material/ project expenses will not automatically change.
Integrated Technology Will Continue to Advance
In the past few years, the construction industry has begun integrating new-age technology into various operational facets. With the growing availability of invaluable resources, such as VR mapping, drone mapping, and 3D printing, industry experts predict that the increasing reliance on virtual reality will allow more companies to streamline their projects conceptual stages, and find efficient opportunities to create innovative designs.
Purchasing this new technology may seem like an unnecessary cost, especially if your materials budget has had to be increased. From a long-term standpoint, however, the right tool will often pay for itself quickly, and with a readily adaptive market increasing the availability of such high-quality innovations, investments are becoming more and more affordable.
Safety Procedures Will Advance
Safety is incredibly important on the job site, and 2018 promises to bring several new advancements in safety protocols, procedures, and technology. Mobile apps introduced in the last few years have already improved safety for workers, and you can expect that trend to continue this year. In fact, with safety being such a priority, expect to see a multitude of new technologies introduced into the construction industry that purely focus on protecting your workers.
Again, some of this new technology may greatly impact your budget, but remember that it’s likely much less than paying worker’s compensation costs for an on-the-job injury.
Prefabricated and Modular Construction Will Become More Useful
One way of combating the higher costs of materials is to start using prefabricated or modular components, so expect to see this type of construction to increase in popularity. Modular businesses will continue to rise in use, especially since they can be put together in very little time. Modular homes may even increase in popularity this year.
Sustainability Continues to be Important
One of the many small business tips that companies in any industry have been following is to focus on sustainability. The construction industry is no exception to this. Expect your clients to insist on sustainable building materials and practices. In addition to helping the environment, you can also save a substantial amount of money by going green. This may be another area where you can save to offset the cost of more expensive building materials.
Overall, you can expect to see the construction industry grow and advance in a multitude of areas in 2018. As always, the success of a building company is based on their ability to plan, forecast, lead people, and achieve a pre-determined set of goals. By just doing this, you will be successful in both a strong, and weak market. While you will have to be concerned with rising costs and changing technology, this is nothing that you won’t have dealt with in years past. If you keep these changing trends in mind, you’ll be able to keep ahead of your competitors and make 2018 one of your best years yet.