Construction Industry Trends 2021

February 1st, 2021 Posted by Uncategorized No Comment yet

Many observers believe that 2021 will be a rebound year for construction, as 2020’s shrinking effect on the industry is expected to begin to reverse itself in the coming months. There are several reasons for optimism, including the development of multiple Covid-19 vaccines to battle the pandemic, and safer job sites created during the past year which now implement new protocols to protect workers from contracting the corona virus.

Another bright spot can be found in a post-election survey done by the consulting firm Deloitte in which 68% of responding engineering and construction executives indicated that the business outlook for the construction industry is ‘somewhat’ or ‘very’ positive.

Fewer Subcontractors

One of 2020’s trends that is expected to continue is the decrease in subcontractor employment. Many subcontractors were unable to remain in business due to the pandemic. General contractors adjusted to this alteration in the labor force by retaining workers on their payroll to perform needed tasks, resulting in better control of costs and performance.

Continued Safety Protocols

Safety has always been a major concern in the construction industry, but never more so than now. In addition to standard construction safety, employers will need to continue to guard their workers against the pandemic. As previously mentioned, job sites have now become safety compliant for Covid-19 with the addition of masks, hand sanitizing stations, social distancing, testing, and shift changes where possible.

More Construction Jobs

Another trend in construction will likely be a significant increase in job opportunities. As many as 226,000 construction jobs were lost in 2020 according to the Bureau of Labor Statistics. As the industry recovers, many of these jobs will return. It’s projected that the majority of new positions will be offered by general contractors looking for skilled workers they want to keep “in house.” However, as the year progresses and the industry begins to restabilize, subcontractors will begin to make a comeback.

Infrastructure Boom

The new administration in Washington, D.C. intends to implement programs designed to create a robust infrastructure. If this comes to fruition, the industry can look for a boom in public works projects and infrastructure jobs.

New Manufacturing and Distribution Facilities

In the private sector there is renewed interest in b ufacturing and distribution facilities to help ease some of the challenges and shortcomings that have been revealed in the “just in time” inventory system we’ve embraced since the 1980s. In addition, distribution centers and warehouses serve the needs of e-businesses which have grown exponentially during the pandemic. This looks to be a fertile construction job market.

Final Word

Without question, 2020 has been detrimental to the construction industry. However, as we move into 2021 and toward a solution to the pandemic, the industry’s ‘lessons learned’ and ‘adaptations made’ will form the basis for a strong rebound and renewed growth in 2021.

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