The construction industry is one of the backbone industries of the American economy, so it’s important to stay on top of the trends you can expect to see. With the New Year upon us, it’s a good time to look ahead to what 2023 holds in store for the construction industry.
Construction Trends for 2023
Construction trends are affected by a number of different long-term and short-term factors. These are trends you should look for in 2023 in the construction industry:
- Higher Construction Costs. This trend is affected by a wide range of factors, such as construction labor shortages, an increase in inflation, continued supply chain disruptions, pandemic factors that are still continuing, and instability overseas, such as the war in Ukraine. The CBRE Group Inc. forecast a 14 percent annual increase in U.S. construction costs by the end of 2022 and beyond.
- Increased Spending in Some Sectors, Less in Others. Despite rising costs in the construction industry, a number of sectors are forecast to experience continued growth into 2023. The American Institute of Architects (AIA) forecast spending on commercial buildings to increase by 6 percent in 2023. On the other hand, high home prices, higher interest rates and inflation, and concern with the economy could likely put a damper on the residential housing and home improvement sectors.
- Labor Shortages. Labor shortages are nothing new in the construction industry, but the issue has worsened as labor shortages have affected most industries in the U.S. The construction industry is hurting for skilled workers the most, which in turn pushes back project timetables.
- Green Construction and Energy Efficiency. Green construction and energy efficient buildings are not new trends, but they are continuing to increase in popularity. The AIA maintains that “green buildings” accounted for 8 percent of construction spending in 2013. In comparison, green building accounted for 47 percent of construction spending in 2022, and green construction spending is forecast to continue to increase. With rising costs of fuel and heating, plus a push towards environmentalism in general, energy efficient buildings are an attractive option.
- Technology, Automation, and AI. The increases utilization of technology is also an ongoing trend, and the sky is the limit. Technology, automation, and the use of Artificial Intelligence (AI) will continue to be integrated into the construction industry to improve safety and security, advance efficiency and productivity in all aspects of the construction process, and boost communication. Look for technology to be the expected norm, rather than the exception!
At Tucker Paving, we have over 25 years of experience in the asphalt and concrete paving industry, and we’re always ready to adapt to the changes in the industry! We offer our expertise for residential, commercial, and municipal clients alike. Contact us today by calling (863) 299-2262, or fill out our online contact form, to find out how we can assist you with your next concrete or asphalt paving project!