The construction industry is continuously evolving and so are the construction trends. The people and companies that work in the field must strive to stay ahead of the competition. While the industry has traditionally lagged in adopting new technology, that trend is changing as Baby Boomers retire, paving the way for Millennials and Gen Z entrepreneurs who have grown up using technology.
These changes are also offering new business opportunities and changing the way business is one. Getting ahead of your competitors could mean the difference between a thriving business and one that’s struggling.
Contrary to a popular rumor, there is no shortage of construction work. But to capture that business, construction firms need to take a proactive approach to best manage their business. This includes managing workers and balancing labor shortages and rising construction costs.
1. New technologies can improve safety and productivity
Reports that technology is replacing workers are overblown. The use of technology in the construction industry is supplementing what construction workers do, enhances productivity and accuracy while reducing waste and overhead.
Rather than replacing construction workers, construction companies leverage technology to fill in gaps created by the shortage of construction workers, allowing workers to focus on other tasks. All in all, technology improves efficiency, making worksites safer, and reducing costs while speeding up delivery times.
Construction firms are using virtual reality, augmented reality, and mixed reality tools to improve building designs and detect errors. Through the use of these innovative new technologies, project managers and designers can visualize a construction project in an interactive 360-degree model before breaking ground. This allows construction project managers to see a project and identify potential problems and solutions before the project starts.
2. Modular and prefabricated construction
The rise of modular and prefabricated construction methods is sure to have a significant impact on the construction industry. By prefabricating repetitive structures like offices, apartment buildings, and hotels, construction companies can avoid the additional costs imposed by weather delays and longer hours. Offsite prefabrication allows construction companies to improve efficiency and recycle leftover materials, reducing waste and cost while improving sustainability.
3. Safety innovations are on the rise
Safety is a huge concern for construction companies because of the high risk and consequence of construction site injuries. Wearable technology like smart-boots, -pants, and -vests integrate GPS, RFID, and Wi-Fi to track employee whereabouts and notify management if someone is injured.
4. Project management solutions
Construction project management software makes it easier than ever before to track and manage all aspects of a construction project. New software allows construction project managers to keep tabs on project objectives, scope, budgets, schedules, and performance requirements in one location. The result? More projects stay on-time and under-budget.
5. The shortage of skilled labors remains
As Baby Boomers retire and younger generations move into leadership positions, the industry has experienced a shortage of skilled labor. To address the situation, trade schools have redesigned their degree programs and added a focus on women and minorities. Despite these new initiatives, the shortage of skilled labor remains. As a result, there will be even more initiatives intended to bring new demographics and perspectives into the construction industry.
Changes create new opportunities
Changes in the construction industry create new opportunities. With innovation comes new risks, and companies that operate in the construction industry need to protect themselves. Working with an insurance partner that has deep roots in the insurance industry can help protect your business in the event of a loss.
McGowan Excess & Casualty underwriters are experts in their fields, with core competencies that include:
- Umbrella / Excess In-House Binding Authority Programs
- Casualty Brokerage
- General Liability & Package Binding
- Specialty Insurance including Accident & Health
Learn more about McGowan Excess & Casualty and our Umbrella & Excess Liability Insurance coverage, and contact us today to speak to one of our qualified brokers about how we can help.
