Several trends are already evident in the construction industry and will likely continue. One of these is the increased cost of raw materials. Raw material costs have increased by more than 100 per cent since August 2021. Another trend is the use of IoT technology, which will improve relationships and help reduce costs.
The cost of raw materials has tripled
In May, average EV raw material costs reached $8,255 per vehicle. That’s up from $2,000 in March and is mainly driven by increased costs of lithium, cobalt and nickel. These raw materials are required to make batteries. But even before the increase in the price of these raw materials, the prices of traditional vehicles with internal combustion engines rose by 106%. While steel and aluminum were the most expensive raw materials in August, they are now only a third of the cost.
Rising input costs are a primary cause of high prices in the global economy. Supply constraints are making it difficult for companies to produce goods at low prices. As a result, producer prices have risen across most economies. For example, the manufacturing producer price index in the US jumped to 127 in September, while it was 110 in August. This indicates that global economic recovery has topped, and supply constraints are likely to persist into 2022.
The cost of labor has increased
The cost of labor in the construction industry has risen thanks to an acute shortage of skilled workers. This has resulted in increased construction costs, longer construction times, and higher home prices. As a result, many builders have become concerned about the rising labour cost. The shortage has grown by more than 25% since 2011, and the concern is expected to increase by 2022.
The construction industry’s supply and demand chains are interdependent. As a result, labour mismatch can have knock-on effects throughout the project’s life cycle and supply chain. In late 2021, for example, project owners reported 25 per cent delays and incompletes due in part to the difficulty in finding skilled workers.
IoT technology will improve relationships
As a result of IoT implementation, construction companies will be able to monitor their workforce more effectively and reduce the chances of accidents. For instance, wearable technology is an excellent tool for tracking the health of construction workers. It can also alert management to unsafe conditions. In addition, smart glasses can help monitor the needs of construction sites.
The construction industry has been slow to adopt new technology, but IoT devices are gaining more recognition from owners. In recent years, companies have begun recognizing the benefits of using these devices. Some have even reported a decrease in maintenance costs, which is a massive boon for construction companies.
Modularization in the construction industry
Modularization has many benefits, ranging from lower construction costs to a faster build time. By removing 80 per cent of the work required on-site, modular construction can also improve energy efficiency and reduce maintenance costs. Modular construction is also more sustainable. It uses less energy and water and can be recycled to build new buildings.
Another benefit of modular construction is its ability to accommodate tight urban spaces. In such situations, staging and transporting materials can become a huge hassle. Not only is it inconvenient for workers, but it can also lead to theft. On the other hand, building modules in a factory can make construction sites cleaner and safer. They also offer more space for workers to move around.
Remote working revolution in the construction industry
As the demand for skilled workers increases, the construction industry is also undergoing a technological revolution. New technologies are enabling workers to do their jobs without leaving the house. Drones, for instance, can conduct Jobsite inspections quickly and efficiently, identifying hazards and taking pictures of the work progress. They can even create as-built models.
Construction is a critical sector of the economy, making up roughly 13 per cent of the global GDP. Despite this, many construction sites have closed, while those open have faced operational restrictions and disrupted supply chains. These challenges have been reflected in the industry’s performance in the financial indexes.
Automation in the construction industry
While automation has long been considered a promising technology for the construction industry, there are a few key barriers to its widespread adoption. One of the most significant is an insufficient workforce. Another is a lack of training. And there’s an aversion to change. Still another obstacle is a lack of a clear business case.
Thankfully, there are other benefits to automation. For one thing, it helps to reduce human error and emotional stress in the working space. Secondly, it reduces labor hours and reduces occupational health risks. Another benefit is that construction professionals can leave the heavy lifting to machines, leaving them to control the devices and perform minimum tasks.