Mansfield Marketing Blog & News

After an uncertain 2020, construction spending was back up in 2021 - and all forecasts indicate around a 7 percent increase in put-in-place growth from a year ago. But even despite this positive outlook, there are various challenges facing the industry as a whole and other factor that construction firms need to be mindful of. With all of this in mind, here's a look at some of the top challenges and trends for 2022 (and beyond) to keep an eye on.

Supply Chain Issues

The demand for construction materials is high. Because of this, and because of the disruption that new COVID-19 variants are having on the global economy, delivery lead times are significantly longer than in the pre-pandemic era. In some cases, lead times are up to three times greater. This is likely to continue throughout 2022 and possibly even into 2023. It's challenging builders to stay on top of their material suppliers to either think ahead on timing or bring in shipments earlier than they otherwise would.

Inflation

You've likely seen the month-by-month inflation data and felt the pinch while filling up your gas tank or shopping for food at the grocery store. Inflation has also spilled over to the construction industry as well. According to some reports, the construction materials special index is up nearly 35 percent from a year ago. As an industry, construction has seen significant price jumps in the cost of plywood, asphalt, iron and steel. Diesel fuel, which powers trucks and heavy-duty equipment, is also more expensive.

Skilled Worker Shortages

A shortage of skilled workers has been an issue for many years now, and the pandemic didn't help this cause. In 2020, the industry as a whole shed more than 1 million jobs as lockdowns went into effect and projects were paused. While the industry has gained back many of these losses, the industry is challenged with staffing projects as construction spending increases. It's forcing construction firms to reassess their recruitment and retention programs so that they're more aggressive. Establishing an outreach program to properly staff projects is another opportunity firms should be taking advantage of.

Innovation Transformation

Firms are under pressure to build faster and safer while staying on budget. This is forcing firms to think outside the box and adopt new technologies and innovations to make this more feasible. From autonomous technology to artificial intelligence to wearables, firms are beginning to adopt more technologies that can promote a safer site and help deliver more cost and budget certainty.