How Will the Economy Impact the Construction Industry in 2024?

How Will the Economy Impact the Construction Industry in 2024?

Understanding how economic trends influence construction can provide valuable insights for businesses and professionals in the field. For instance, high interest rates and slower economic growth will put increasing pressure on construction and manufacturing this year. Here’s a comprehensive look at how the current economic landscape is likely to impact construction in 2024.

Inflation and Interest Rates

The economy is still experiencing inflation pressures from energy prices, wages, and consumer spending, which impacts project financing.

Additionally, with interest rates playing a pivotal role in construction financing, the Federal Reserve’s actions this year regarding cutting interest rates hold significant sway. Lower interest rates will stimulate borrowing for construction projects, reducing overall borrowing costs for businesses and clients. This creates incentives for investment in construction ventures, particularly in the residential sector.

Supply Chain

Late last year, construction companies were still facing supply chain issues, but construction firms can expect supply chain improvements as the year progresses, which will help reduce delays in construction projects. The pandemic changed communication methods between the construction industry and suppliers, with construction firms adopting communication technologies to streamline material ordering workflows. With access to more complete and speedy information, construction firms are empowered to keep projects on track.

Labor Market

The construction job sector experienced growth last year. However, construction job openings have decreased recently, even though wages have increased by 4.9%. This highlights the importance of competitive pay and innovative training programs to attract and retain employees.

Recession Worries

Higher employment and higher wages create more spending power and add to the supply and demand issues perpetuating a potential recession. With interest rates stalling and contributing to a decrease in project financing power, an economic recession is still top of mind for businesses. While signs at the moment are pointing to a soft landing, the construction industry should still be preparing for economic shifts.

Shifting Geopolitical Landscape

The Israel-Hamas conflict heightens concerns about the possibility of broader tensions in the Middle East, which could potentially impact energy and other raw material prices. U.S. sanctions on Iran might exacerbate these issues, while ongoing tensions between the U.S. and China could contribute to inflationary pressures.

 

Tips to Avoid OSHA Violations and Fines in Construction

Tips to Avoid OSHA Violations and Fines in Construction

The Occupational Safety and Health Administration (OSHA) plays a vital role in ensuring the safety and well-being of construction workers, and violations of OSHA regulations can lead to significant fines. Obviously, you want to protect your employees from harm, but you also want to avoid serious consequences for your business. To avoid increasing OSHA violations and fines, here are some essential tips that contractors and construction companies should consider in order to reduce risk and protect employees as well as their businesses.

Stay Informed About OSHA Regulations

The first step is to be aware of OSHA’s regulations and safety standards for the construction industry. Keep in mind that these regulations aren’t permanent – they periodically evolve to address new hazards and improve worker safety. Safety standards include topics such as fall protection, trench safety, personal protective equipment (PPE), use of scaffolding and aerial lifts, and the safe operation of vehicles. The construction industry is subject to some different standards than other industries, so be sure you’re aware of the safety issues that apply to your specific jobsite.

Prioritize Training

The best way to keep workers safe and prevent OSHA violations is to ensure that all employees receive proper safety training and education. You need to keep informed of the types of training required and how frequently the trainings need to be repeated. Additionally, administer regular safety meetings and training sessions to reinforce safe practices, raise awareness of potential hazards, and keep everyone informed about the latest OSHA regulations. OSHA offers a variety of training and resources to help companies comply with training requirements.

Check in with Workers

Keeping up with required training is a start, but in order to create an environment where workers feel safe and supported while expecting to hold to proper safety regulations, make sure you’re having regular check-ins with employees. Discuss any safety issues they might be encountering, and double check they’re using the appropriate safety gear.

Regularly Inspect and Maintain Equipment

Faulty equipment and machinery are common causes of accidents in construction. Regular inspections and maintenance will help identify and rectify potential issues before they lead to accidents. Ensure that all equipment, tools, scaffolding, etc. is in good working order and that safety features are functioning correctly. Keep a list of inspection dates, including the last inspection and when something will need to be inspected again. It’s important that safety inspections don’t become an exercise in checking off boxes. They need to be thorough to ensure the highest level of safety.

Document Safety Procedures and Incidents

Maintain thorough records of safety procedures, training sessions, and safety incidents. This documentation can serve as helpful evidence in case of disputes or OSHA inspections.

Take Advantage of OSHA Consultation Services

OSHA offers no-cost, confidential consultation services to small businesses as a resource for improving safety compliance. The service will help identify and address potential safety issues and establish or improve safety programs.

If you have more questions about OSHA regulations or are seeking guidance on how to learn more about improving your construction site’s safety measures, please don’t hesitate to contact me. We’re here to assist you whether you need more information or wish to schedule an appointment. Safety is a shared responsibility; let’s work together to uphold it.

The Benefits of Drone Technology for Construction Firms

The Benefits of Drone Technology for Construction Firms

Construction firms are catching on to the value that drones – or unmanned aerial vehicles (UAVs) – add to construction projects. In this article, we’ll explore some of the benefits of construction firms using drone technology.

Enhanced Accuracy

Drones have the capability to collect detailed, high-resolution images of construction sites, equipping construction firms with a level of accuracy that may not be feasible with traditional methods. This can be especially useful for surveying and mapping sites. Creating and updating topographical maps are traditionally expensive and time-consuming tasks that require critical attention to accuracy. By employing drones, which can map large areas of land, construction firms can create more precise and detailed maps, which can help with planning, design, and overall project management.

Increased Efficiency

Drones can quickly and easily capture data and images of construction sites, offering firms the ability to swiftly evaluate progress and identify any issues that may need to be addressed. This use of drone technology saves time and resources compared to more traditional approaches such as manual inspections or using manned aircraft. And because drones can cover vast areas in a shorter amount of time, construction firms are able to gather more data and make informed decisions faster.

Improved Safety

Drones provide an effective and economical way to monitor safety. Because drones can be used for site inspection and monitoring, the need for workers to engage in more physical tasks, like climbing scaffolds or ladders, can be reduced, thereby avoiding potential falls or other accidents. Additionally, drones can monitor hard-to-reach areas, capturing real-time information without risking health and safety of personnel. Drones can also help determine possible hazards and unsafe conditions, enabling workers to address them before they become problematic.

Better Communication

Construction firms can use drones to capture aerial footage, providing a visual representation that communicates site progress in a way that is easy to understand and keeps all parties, including clients and investors, on the same page. Drones can also help project leaders quickly identify malfunctions and breakdowns and communicate with equipment owners, who can take speedy action to assess issues, which can cut down on delays and added costs.

Cost Savings

Drones can help construction firms save money in many ways. Two significant money-saving attributes this technology provide are:

  • Labor costs: By using drones for tasks such as inspections and mapping, firms can reduce the need for workers to physically visit sites.
  • Problem identification: Drones can help identify issues promptly, which can prevent costly delays or rework later on in the project.

Increased Competitiveness

Construction firms can stay ahead of the curve by using drone technology. The construction industry is becoming progressively technology-driven, so the sooner firms embrace new tools and technologies, the better positioned they’ll be to succeed in the long run.

How Construction Firms Can Leverage Technology to Control Project Costs

How Construction Firms Can Leverage Technology to Control Project Costs

The construction industry isn’t known for its willingness to embrace change, so it’s no surprise that, generally, the industry’s been slow to accept technology. Enter the Covid-19 pandemic and subsequent economic turmoil and labor and material shortages, and many business owners are now looking to technology-based solutions to drive productivity and keep costs low. Below are five examples of how modern construction technology can help control project costs.

Make More Accurate Cost Predictions

Every construction project is unique, and for some projects, budgeting can be vague and inaccurate, rendering cost prediction difficult. Faulty cost prediction can lead to the need for rework. 3D modeling software like BIM allow businesses to shift from the design-bid-build model to a more effective design-build model. Project managers can use the software to:

  • Digitize the construction site
  • Help make better design decisions
  • Improve predictability, productivity, and profitability of workflows
  • Share plans and designs with trades and contractors to increase efficiency
  • Compare supply and financial needs of different building techniques

Cut Down on Rework with Project Management Software

There are typically at least a few changes that need to be made to the scope of a construction project throughout the course of the job. In fact, approximately 30% of the work done by construction firms is actually rework. Project managers are constantly needing to change course, adjust budgets, and communicate changes to their teams as quickly as possible. When project managers take advantage of project management software, they can increase project visibility, improve communication and respond quickly to project changes, and streamline task management with real-time insights from the field. All of this helps to curtail unnecessary rework.

Stay Informed of Market Fluctuations and Identify Areas of Inefficiency

Construction companies are no strangers to the challenges that come with inflation, shifting labor costs, and irregular supply prices. Though these factors are typically observed during the early planning stages, by the time the project gets rolling, project managers could be working off of outdated market information. AI-based software can help project leaders stay informed of adjustments in regulations or costs, while construction budgeting software can help pinpoint inefficient processes within the project.

Prevent Inefficiencies with Real-Time Jobsite Data

Real-time on-site data is necessary to boost efficiency and improve projects. With construction management software, project leaders can collect real-time jobsite data such as daily reports, production tracking, and safety compliance. Daily data collection helps project managers spot and prevent expensive inefficiencies as they arise.

Communicate Through Digital Technology to Ensure Project Success

Construction companies can shorten turnaround time and operational expenses by strengthening on-site efficiency and output. This is why a large number of construction companies have started to invest in connected technologies, which use sensors and tags to connect job sites, machines, and workers, allowing for real-time visibility and adjustment capabilities for project leaders. Benefits of connected technologies include improved communication and transparency, more accurate timelines, and minimized risk.

How to Implement Current Construction Industry Trends to Tackle Challenges and Boost Company Growth

How to Implement Current Construction Industry Trends to Tackle Challenges and Boost Company Growth

The construction industry has seen its fair share of challenges throughout the past two years as the pandemic surged, and the jury’s still out on 2022. The good news is that following technology trends can help withstand challenges and leverage ongoing opportunities for company growth.

Address Labor Shortage with Tech Tools

As with most industries in this post-pandemic climate, the construction industry is experiencing labor shortage, and there is no indication that this will change soon. One of the best investments builders and contractors can make right now is thorough training of valuable and promising workers so they’ll have the skills needed to thrive in the field. Think about equipping workers with new state-of-the-art technology tools — an investment that’s sure to reap rewards even as the industry fluctuates.

Look into Modular and Prefabricated Construction

Don’t overlook the modular construction market — it’s projected to reach $157 billion by next year. Offsite prefabrication and modular construction, where a structure is built offsite and delivered to the planned site, is trending upwards due to consistent quality and decrease in labor costs and construction time. Additionally, material waste has plagued the industry for some time, but this method addresses that inefficiency by recycling leftover materials.

Promote Teamwork with Collaboration Technology

In order to foster communication and coordination between office and field teams, think about implementing a workflow automation platform such as Fluix or Integrify. Swapping paper documents for digital construction forms and automated workflows helps to streamline the process while allowing teams to collaborate and oversee field documents.

Go Green

It’s no secret that reducing our collective carbon footprint is a trend with staying power, and the construction industry is not immune. Companies can be conscious of this by lowering operating costs, improving occupant health, and increasing occupancy rates.

Increase Jobsite Safety with Wearable Tech

Approximately 20% of worker fatalities in 2019 occurred in the construction industry. Suffice to say, safety is a trend. This includes construction technology and better safety equipment such as products with IoT connected sensors that are incorporated into wearables like safety vests and hard hats. These products help improve worker safety by alerting management to a worker’s location. Using wearable and embedded sensors can help prevent injury from falls, heavy machinery, and overexertion.

Automate Repetitive Tasks

Self-driving vehicles and drones can help accelerate the construction process by improving productivity and accuracy without risking job security. This automation process can take care of repetitive tasks while freeing workers to focus on specialized projects and individual responsibilities.

How Construction Firms Can Save Time and Money Among Labor Shortages and Supply Chain Issues

How Construction Firms Can Save Time and Money Among Labor Shortages and Supply Chain Issues

Last year 35% of contractors reported turning down work due to skilled labor shortages. Couple this with a lack of resources due to supply chain issues and an industry that doesn’t seem to be slowing down, despite a short stall at the beginning of the pandemic, and construction firms are finding themselves in a position of putting the focus on running a more efficient business. Ultimately, this focus can help determine ways to save money or ways to reinvest in either hiring or retention and training. Read on for some strategies that will ultimately help you save time and money.

Provide Consistency

Consistency across the span of a project builds client trust and customer satisfaction, and building the importance of consistency into staff training can produce cost-effective results.

  • Be sure your employees work by your company’s mission and core values. They should serve as touchstones throughout the duration of the project, whether anticipating customer expectations or meeting any unforeseen circumstances, including a shortage of staff.
  • Hold on to returning customers by training employees to be responsive, helpful, and consistent with their answers.
  • Employees who have the most interaction with customers should be trained in a way that provides consistency in addressing any questions and issues throughout the project. They should be proactive, empathetic to concerns, and solutions-oriented.

Prioritize Communication

As a business owner, if you feel that you lack the communication skills necessary to see a project through to the end, consider outsourcing a service to answer incoming calls. This can save time, and you can focus your energy on more pressing matters. Also think about establishing a company website as a means of interacting with current and potential clients. Use extensions like live chat, interest forms for gathering contact information, and online sales and specials to hook new customers and drive sales.

Invest in Software for Efficiency

Technology in the construction industry has the power to save time, improve workflow, attract skilled labor, and provide optimal customer service. Because efficiency in customer scheduling has proven to be a challenge for many construction firms, consider investing in software that focuses on customer and project management. Technology that can provide efficiency and capture project details can have a positive overall effect on your business.

Construction firms in today’s economy are faced with widespread labor shortage and supply chain issues, as well as skilled workers aging out of the workforce. This all culminates in an industry-wide lack of resources that is only growing. For an industry that is no stranger to labor turnover, focusing on consistency, time investment, and customer attention is paramount, and will allow you to run a more efficient operation and save money in the long run.