Top 7 Impacting Construction Industry Trends for 2024

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As we head into the new year, construction will continue to evolve and grow. 2022 was a year of activity, changes, and opportunities that made an impact on construction. The construction industry is composed of some of the brightest building minds, and as we head into 2023, there are some impacting trends that are taking effect into the next year.

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Labor shortage continues 

As we head into the new year, labor shortage continues to persist. In 2022, it was estimated that there will be a labor shortage of roughly 650,000. The construction employment numbers are still uneasy as we head into 2023.

Roughly 40% of our construction workforce are expected to retire over the next decade, so having the right training programs in place is crucial to keep the job engine running strong. 

Many contractors in construction are currently enhancing their training courses and educational programs to address the labor shortage for skilled trades persons. Skilled labor Shortage will continue to be a thorn in the side for many contractors in 2023. 

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Higher technology adoption 

Every industry goes through a digital transformation, and currently, the construction industry will continue to go through technological advancements. As we continue to build toward the future, innovation does not stop.

The construction industry is constantly evolving through innovative techniques and solutions to get projects done on time.

We can expect to steer away from the traditional paper and pen workflow and automate data workflows. There are many verticals of construction that technology can support, so expect to see more digital HR, productivity, and safety solutions in the market. For example, there was a study by KPMG in 2022, roughly 82% of owners felt the need to collaborate more with contractors.

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Improving safety + training programs

Safety in construction continues to be a top priority as we head into 2023. Many contractors are beefing up their safety solutions, programs, and training courses for their workforce to prepare their teams for the field.

Many safety professionals are working together with construction solution providers like Kwant and other internal departments to streamline safety with features that will protect their workforce on the field.

Many contractors and owners are making safety a top priority because many understand the impact of a safety jobsite versus an unsafe one. Safer jobsites tend to be more productive and profitable for construction companies, and that understanding is becoming more important.

When an incident occurs, we only have a few seconds to respond, so having the right technology in place and education is crucial to reducing incidents on the field. To learn more about outreach training programs, visit the OSHA website.

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Incorporating artificial intelligence 

Artificial intelligence has been around for some time now, but is slowly being incorporated into construction technology. Due to the slow rate of technology adoption, AI or better known as artificial intelligence has been slow to incorporate into construction. There is enormous potential for AI technology to improve performance and productivity outcomes.

Many contractors are starting to use AI for machine learning, robotics, computer vision, knowledge-based systems, and further data optimization. Since the technology is slowly incorporated and contractors are still learning new ways to benefit from AI. 

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Connectivity + integrations

With the amount of solutions out on the market for construction professionals, many contractors are beginning to integrate and connect their devices that normally wouldn’t speak to each other.

Having solutions that speak to each other streamlines workflow processes and automates data gathering and management. An open API is an application program interface that is for public use and developers to gain access to software applications or web services.

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Data management + cybersecurity

Data management and cybersecurity go hand-in-hand. As contractors continue to build using current and new technologies, data management and cybersecurity is becoming more important by the year.

Data hygiene is not something regularly taught in our personal lives, let alone work lives, so when handling business information, being able to manage sensitive data is crucial to the success of a project.

Having quality data allows for contractors to apply their rich information in applicable ways to benefit outcomes. Human error is the biggest reason for companies getting hacked so teaching your employees how to handle sensitive data is crucial for quality assurance. 

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Supply chain support & management 

Due to the cost of materials and labor, supply chain management is becoming a higher priority for many contractors. The cost of materials are always fluctuating and other costs like transportation, weather conditions, world events, and material usage are huge factors that affect pricing. 

Many contractors have limited supply chain visibility and technology is becoming more important to capturing insights and delay notifications for project materials. Logistics will always benefit from the use of technology and contractors alike. 

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Looking ahead 

As we reflect upon the changes and trends happening in the construction industry, 2023 is shaping up to be an interesting year. As innovation continues to climb, contractors and builders are capitalizing on new technology and solutions in the market to complete projects in a safer and cheaper way. 

Many contractors and builders are utilizing solutions that help centralize and consolidate project information into a workforce management platform like Kwant. Kwant is a workforce management & safety platform built to accelerate construction through productivity and safety. Using smart wearables and plug-n-play sensors, Kwant connects jobsite data and provides real-time insights & reports.

Learn how to implement some of these trends for your construction company today and start next year off right.

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