The Construction Industry – Top Market Drivers
Many companies saw a significant impact caused by the decrease in demand in the construction segments during the coronavirus pandemic. However, the construction industry made a significant rebound in 2021 and customer demand is continuing to improve into 2022. While this is good news, there are several drivers that impact the fluctuations in demand. Today, we will review some of those drivers:
Labour and skilled workers – The skilled workforce required in the construction industry is essential. Recruiting and retaining employees is necessary to ensure that the construction industry can continue to grow and meet demand forecasts into 2022. Unemployment is declining, which will act as a positive driver for the construction industry into 2022 however, there will continue to be constraints due to shortages of skilled labour.
Technological Advancements & Integration - Although many industries have been making technological advancements for several years, the construction industry is assessing how to incorporate many of these advancements to create safer work environments and increase efficiency and profitability. With equipment life cycles nearing their peaks, investments to new fleets with advanced technology will be on the rise.
Infrastructure Investments – These investments will focus on public assets and services such as bridges, roads, utilities, sewage systems etc. The U.S. has recently passed an economic stimulus bill which will allot aid to State and Local governments, to be used in part toward infrastructure investments.
Consumer Sentiment – This economic indicator gauges how confident consumers feel about the economy and their personal finances. The consumer sentiment is currently on the rise and directly affects Consumer Spending.
Consumer Spending – This measures the total money spent on goods and services in the economy and forms much of the economic output measured by GDP (Gross Domestic Product). GDP saw a large upswing in 2021, and the economic recovery is continuing into 2022.
Despite the challenges that 2020 presented, there was a positive recovery in the construction industry in 2021 and based on forecasts and market conditions, we are expecting 2022 to see even more growth. Accucam is proud to be a supplier to this diverse segment and are looking forward to what 2022 will bring to the industry.