Construction Industry Forecast for 2022
The rise of COVID-19 temporarily thwarted the growth of the construction industry, but it is expected to recoil in 2022. The construction industry has around 13% contribution to the global economy and 4.3% to the US economy as per 2021 stats. Approximately 273 million people worldwide are associated with the construction industry as direct employees. It means what happens in this industry greatly impacts the overall economy of nations and the whole world.
In this article, we will be discussing emerging trends that we will see in the Construction Industry in 2022.
1-Huge Governmental Investment
The first trend that we will see in the year 2022 is the Government will invest in huge infrastructural projects. In November 2021, the American Senate passed the Infrastructure bill of 1 trillion dollars. This infrastructure Bill can have a bigger impact than the Big Deal that overcame the Great Depression. Similarly, we will witness huge infrastructural projects from the Chinese and UK governments. As a result of these mega public projects, the construction industry will boom, as the Glenigans 2021-2023 Construction Industry Forecast predicted.
2-New Materials
The next big trend will be new materials such as light-gauge steel, bendable concrete, laminated timber, and recycled material. They will reduce cement consumption and cut down carbon emissions. These new materials are environment-friendly but lightweight, stronger, and sometimes cost-effective. All big players are putting huge investments for R&D in these materials. As a result, these new materials are expected to become common in the construction world in 2022.
3-Construction Insurance
Another big trend in the construction industry will be construction insurance. It will be due to two reasons. First, governments will be stricter in regulation than before. Second, due to the many Covid-19 contractors, property owners and investors face many troubles in fulfilling their liabilities. Therefore, the construction industry will not neglect insurance. Construction insurance has multiple advantages, such as dealing with contracts, materials, and damages to under-construction buildings. The insurance covers residential and commercial structures under construction.
4-Digitization
The new era is the era of data science. And all industries will be utilizing digitization. So, another big trend in the construction industry will be data-science-based decisions. Buildings have already gone smart with internet devices. In design, operations, and construction, IoT devices will generate enough data to be used. A data-based technique called BIM (Building Information Modeling) will be used for design. Forecasting and decision-making will increasingly be done with the help of digital tools.
5-3D Printing
A growing number of housing and construction machinery parts will be made using 3D printing in 2022. Buildings can now be constructed from start to finish, thanks to 3D printing. Several advantages of 3D printing include its low cost, efficiency in material usage, and high accuracy. In the near future, we will most likely see 3D printing put into practice.
6-New Entrants
Due to COVID-19, many industries have seen a boom while others have suffered. This change in the cash-flow equation will bring new players to the construction industry who have profited during the pandemic, creating a trend in the construction industry of new startups with innovative approaches.
7-Labor Shortage & Robotics
In Europe, America, and even China, the population is getting older. According to the US Census projection, by 2030, one in 5 Americans will be over 65 years old. This means labor shortage will be further aggravated in 2022. As a result, robots and drones will play a key role in the coming years in the construction industry and industry at large.
8-Sustainability
Despite its importance, sustainability cannot be ignored in all sectors of the economy, including construction. Due to the looming climate crisis, Governments will put strict regulations regarding sustainable and green buildings. Therefore, another big trend in the construction industry will be sustainable buildings. Companies have to comply with carbon emission requirements.
Final Words
The construction industry is expected to recover growth in 2022 due to government-led huge infrastructural projects. In Particular, the US Federal Government will be undertaking a landmark project of $ 1 trillion. The construction industry will also go green and sustainable like other industries, and we will also witness the use of new materials and some new startups entering the market.
About Daniels Insurance, Inc.
At Daniels Insurance, Inc., we have a unique understanding of the risks that businesses like yours face on a regular basis. With the backing of our comprehensive coverages and our dedication to customer service and quick claims resolution, your business will be fully protected. For more information, contact us today at (855) 565-7616.