Construction in the U.S. is in high demand. As the global population is expected to hit 9 billion by 2050, two out of every three people are expected to be living in a metropolitan area that same year.
However, while the need for more development projects may be strong, the construction industry still faces a variety of challenges it must overcome. These setbacks could hurt the construction industry’s value and profitability over time.
Common issues facing the construction industry
These are some concerns owners and companies should be aware of:
- Increasingly complex projects: As there are more opportunities to develop, the complexity of implementing projects can increase. Often, challenges can arise when construction companies are operating under tight profit margins, as designs become more extensive and require greater efficiency to create. These factors can put extra expenses on a construction company, which could eliminate a large portion of their budget when they can’t afford it.
- Concerns regarding sustainability: As the construction industry is one of the biggest consumers of raw materials, this can create obstacles for companies as balancing project demands with trying to meet emissions standards can be burdensome. While sustainable design can reduce energy consumption and pollution, the industry may have to find a new approach to project management, which they may not be ready for.
- Labor shortages: Construction companies are currently having a hard time finding workers. In a recent study by the Associated General Contractors of America, 74% of respondents stated they believe there’s a gap in skilled trades, as many construction organizations are finding it challenging to hire people who fit specific roles.
- Differing attitudes towards work: Before the Great Recession in 2008, the industry comprised of mostly traditionalists and baby boomers. But now, the construction workforce has two more generations of workers thrown into the mix: Generation X and millennials. While having diverse perspectives can be beneficial in some cases, differing attitudes regarding work ethic, outlook and behavior can create productivity challenges.
Facing challenges head-on can be nerve-wracking
Construction projects can be extremely complicated. With so many factors impacting the industry’s future, this may create anxiety for some construction businesses. In these instances, companies may want an attorney who can address their concerns and help them achieve their long-term development goals.