Check in: Construction outlook for 2022

Although we are a good chunk into 2022, it’s important to check in and see if that outlook has changed or if key players in the industry need to adjust. Although construction has made a big recovery since the 2020 recession, there are still significant challenges many engineers and construction managers are currently facing in 2022. After the scorching heat wave of the summer months, with many managers are still dealing with major supply chain shortages, there will be a light at the end of the tunnel.

The workplace continues to evolve

Many workers were laid off or displaced during the 2020 recession, causing the current way we staff and work to continue to evolve well into 2022.

One of the biggest topics in question is how to restart job sites safely and effectively as projects resume and more funding is accessed, according to this detailed report from Deloitte. While the industry is quick to adopt new safety standards, it’s still difficult to attract qualified talent to come work on job sites.

This continued labor shortage has negative impacts including project delays, projects being scaled back, failed innovation and losing out on bids. As we move forward into the end of 2022 and the beginning of 2023, it’s crucial for talent management teams to adopt new strategies to keep the workforce strong and steady.

Growth despite challenges

As we mentioned before, there’s a light at the end of the tunnel with a forecasted growth of 8.8% in 2022 despite growing challenges, according to Global News Wire. This is much better than the 1.8% growth in 2021 and the first double-digit growth in the residential construction sector since Q3 2020.

A lot of this predicted growth is attributed to the $1 trillion infrastructure spending bill that went into place in late 2021 and the growth in the industrial space. The growth of online shopping in the U.S. is some of the biggest in the world, causing a shortage of warehouses and distribution centers. This pushed industrial developers to find more warehouse space in our country.

Better data analytics

In order for the construction industry to grow, we must find ways to become more connected. At the helm of this connection is new technologies that include data analytics and user insight capabilities to help connect and automate our workforce. Streamlining processes and communication continues to be a large theme well into 2023.

For more information about the latest industry updates or to learn how to invest in an ACEC Utah membership, visit our website or call 801-657-4470.