The construction market is the glue that holds the global economy together, and recent slumps in output thanks to various challenges, including rising costs, difficulties finding the right staff and the war in Ukraine, have all helped to cause turmoil.
Inflation is at an all-time high, thanks, in part, to rising property costs caused by a lack of supply and increased demand for housing. These issues, alongside others, have contributed to major problems throughout the global economy and led many to face serious financial hardships throughout the beginning of the year.
Thankfully, things are starting to look up, and construction growth is rising in many countries, including the UK. While that is good news, construction projects take time to complete, so the effects won’t be instant.
However, we can expect some positive changes on the horizon, both for the construction landscape and the wider economy. Keep reading, and we’ll explore the trends we can expect for the latter half of 2023 and beyond in the global construction landscape and how they will affect the wider international economy.
Increased Investment In Infrastructure
Infrastructure is key to growing global economies, and most countries have targets to help them achieve their aims and ensure that citizens have access to the solutions they need. That means increasing road and tunnel construction to allow for better transport routes and improve logistics to help get supplies to various regions. So, we can expect greater interest in infrastructure technology and a rise in projects being submitted for approval globally as we move forward. More infrastructure will allow for greater connectivity and help to drive forward even more construction projects, so it’s a win for the industry as well as communities across the globe. Infrastructure is also changing and becoming increasingly high-tech, with smart motorways and digital driving tools paving the way for even greater change. While much of this technology isn’t ready to be rolled out on the global stage just yet, it could be in a few years, so many construction project managers will already be exploring these solutions and ways they can make their infrastructure fit for the future.
Rising Housing Targets
The global population continues to rise, but many countries are facing a housing shortage thanks to reduced outputs over the past few years. When the pandemic began and lockdowns were instigated, construction stopped for many months. Even when construction projects were finally reopened, issues such as skills and materials shortages meant many projects were delayed or put off indefinitely. It’s likely that over the coming months, and even into 2024, when new budgets are approved, governments around the world will be looking to raise their new-build housing targets to meet spiralling demand. By raising targets, countries can hope to reduce housing shortages and keep rents more stable, which will help to reduce the chances of another hyperinflation spike like we’ve seen this year.
Sustainability Remains A Key Topic
Looking away from the economic issues the world faces, we’re also in crisis when it comes to the health of our planet. Our overuse of natural resources and mismanagement of land globally has led to major issues with our ecosystem, which we are already seeing the effects of in the form of drastic weather changes. The construction industry is one of the most significant polluters worldwide thanks to its reliance on fossil fuels, both for transport and materials. As such, finding ways to be more sustainable has been an important topic for business leaders and industry thinkers within the construction space for many years. That’s not going to change now, even with the many other challenges the market faces. Companies still need to explore ways to be more eco-friendly, ranging from small changes like going paperless through to major advancements, such as exploring new ways to fuel their vehicles and sourcing biodegradable or recycled materials. These developments take time to implement, particularly in the construction landscape, but companies that have been working on sustainability improvement projects for some time will now be able to start reaping the benefits, both in terms of cost and reputation.
Pre-Fab And Modular Homes Are Becoming More Popular
With material costs skyrocketing and many companies facing delays to completion thanks to logistical issues, it’s perhaps no wonder that pre-fabricated and modular homes are being hailed as the solution to the housing crisis. These ready-made properties can be set up quickly and efficiently, and while they don’t last as long as traditional homes, they can be an ideal solution in the shorter term. It’s likely that increasing numbers of companies will start offering pre-fabricated and modular homes to help ease the housing crisis and provide much-needed shelter for many individuals around the world. These structures are usually cheaper than traditional construction projects, so they will also be an ideal alternative to cash-strapped local authorities and housing providers seeking ways to fill quotas. These structures could change the shape of the global real estate market for the next few years and make it easier for some individuals to get on the property ladder.
More Companies Are Exploring Automation
Automation is the key to streamlining operations and cutting costs throughout the construction landscape, and both of those focuses are more important now than ever before. With costs rising rapidly and talent gaps making it harder for companies to recruit the staff they need, companies will be increasingly turning to automated tools to make it easier for them to complete projects. While these solutions won’t completely replace the need for skilled workers, they will cut down on the repetitive tasks they have to do and reduce overall costs. Developers across the construction tech industry are launching innovative new tools to keep up with rising demand from managers across the industry, so they’ll be plenty more options for construction companies to explore.
India Is The One To Watch In Construction
Globally, India is the one to keep an eye on in the construction landscape, as the country is growing its output steadily. The country is currently on track to become the 3rd largest construction market in the world in just 3 years. With the government investing trillions of rupees into the sector’s ongoing development to bolster jobs and provide much-needed housing and infrastructure, the market is set to grow exponentially across India. Changing regulations are also making it easier for companies to start projects and see them through to completion, meaning that India looks set for a boom in construction both now and moving forward.
A Final Word On The Upcoming Construction Trends For 2023
The future is never certain, but what we can say is that the construction market remains essential to the smooth running of the global economy. So, everyone from government legislators to construction industry leaders will be working hard to ensure increased output and the ongoing success of the market worldwide. It might take time, and there will be many struggles along the way, but the construction market, and the people who run it, are tough, and will continue to adapt and evolve over the months and years still to come. These trends are just some of the changes we can expect, but only time will tell how the construction market will truly adapt throughout the remainder of this year and beyond.