As new COVID-19 cases decrease and businesses approach pre-pandemic normalcy, the construction industry must prepare for a potentially $35 trillion boom, according to www.forconstructionpros.com.
However, lawyer and construction advisor Barry B. LePatner says contractors first will need to address financial constraints caused or exacerbated by the pandemic. Following are issues LePatner says the construction industry must address to share in the upcoming post-pandemic economic recovery.
- Pricing: Construction pricing is highly sensitive to supply and demand. As the construction market slowly recovers, some contractors have been pursuing riskier projects to keep their workers employed. Recovery reportedly will be delayed if contractors continue to choose to pursue low-profitability projects into 2022 and the future.
- Skilled worker shortage: The industry must find ways to recruit and train new employees and develop a new generation of workers to satisfy increasing demands for the future.
- Increased materials costs: Before the pandemic, as much as 30% of all materials and products used on many projects were purchased abroad. Prices for many building materials rose dramatically during the past 18 months, and the pandemic upset the global supply chain. As a result, many manufacturers are building new factories in the U.S.; the domestic supply chain will be more reliable, but product costs are expected to rise at least 20% higher than existing prices.
- Adoption of new technology: Contractors have been slow to adopt advanced technology. Most firms have been unable to allocate funds to invest significantly in the hardware, software and training that can help increase efficiency and productivity.
