Unprecedented disruption has been caused by the 2020 coronavirus pandemic.
The construction industry has seen enormous change, the rise of teleworking, social distancing requirements, supply chain breaks and cash flow disruption to name a few. Some of these will continue into 2021 but may take on a more adapted form. Here, we look at ten industry trends for the upcoming year.
1. Safety
This should always be high up on the agenda, however, the pandemic has increased the need for us to take all the steps necessary to ensure the safety of employees and customers. Adjustments may be made in the workplace to mitigate the spread of the disease; this can include things like separation of workers and implementing cleanliness protocols. In construction, the separation of workers may be an issue as teams need to work closely together on-site, expect to see solutions such as smaller crews and staggered shifts.
2. Living Materials
The development of living materials may be one of the more exciting trends to emerge. The biological compounds grow themselves and may be swapping interesting experiments for full-scale production in the near future. The most promising biological materials are made of bacteria and fungi.
Self-mending concrete refers to concrete-filled with bacteria that binds materials around them into new structural material. The material has the ability to grow within concrete pores which adds to its impermeability.
3. Remote Technology
Every commercial job almost certainly has some sort of drone on-site. The construction sector is without doubt the fastest-growing adopter of drone technology, according to DroneDeploy. Invaluable information can be found from contractors looking down at a project from above. Things such as safety issues can be quickly discovered, the quantities of materials on-site can be estimated accurately and maps can be created which makes large job sites very much visible.
The technology is becoming even simpler to use which will hopefully increase adoption across the board as well as it being used on even smaller jobs.
4. 3D Printing
Having been used by early adopters already for some years, 3D printing is expected to make more noise in 2021.
5. Modular Construction
Modular construction and pre-fab building was already steadily on the rise before the pandemic struck. Manufactured buildings already promote low worker density because of the way that they are built. Once they have been produced, they have to be moved by trucks which works better if the building is typically small.
They could be the ideal solution to businesses who need offices with individual systems or if a hospital needed a few extra rooms.
6. Design Technology: BIM & VDC
Another trend that was exploding with popularity before the pandemic. BIM is here to stay, the promise of constructing buildings in a virtual space before real life is too useful to be ignored by designers or contractors.
BIM has taken over the industry, replacing CAD as quickly as CAD replaced pencils. Programs like industry leader REVIT are fundamentally re-thinking the design and production process.
7. Work Disruptions
Work within construction is tied to one thing: capital. Capital hates uncertainty but unfortunately, the current economic climate makes financing projects, especially large ones, very difficult.
The AIA expects spending on non-residential buildings to decrease in 2021 as government debt increases at every level. It is almost certain that spending on infrastructure projects will be delayed.
8. Payment Disputes
Bankruptcies are already on the rise and it is predicted that this trend will continue into 2021 with both construction companies and building owners affected. A rise in lawsuits is also expected after a wave of mechanic liens, as contractors and sub-contractors claim portions of property belong to them as a mechanism for collecting some form of payment.
9. Supply Chain Diversification
Disruption to supply chains has already forced contractors into scrambling to find alternatives otherwise they will have to be higher prices. Long-term business relationships will likely have to be re-evaluated. New contracts will put an emphasis on escalation clauses as companies look to cover unforeseen cost increases. This also proves an opportunity for smaller suppliers to move into areas and clientele that may have been difficult to access previously.
10. Drop in Non-Residential Starts
Non-residential building starts are down in 2020, however, residential building starts are up. Much of the surge in houses can be credited to low-interest rates as well as people looking to move to individual apartments and away from crowded urban centres.
For the non-housing sector, the blame is down to the uncertainty. Investments in large and expensive office buildings can be difficult to make as the future of their very industries are in question.
A positive is that architects are reporting that projects are being put on ‘hold’ rather than cancelled. Some hotels are using the opportunity of low occupancy to renovate their buildings, something which would have otherwise been disruptive to their guests.
