By Patrick Hogan, CEO, Handle.com

As the year 2020 is starting to take its course, it is time to take a look at how the construction industry has developed over the past few years and imagine its future ten years hence.

The past decade for the industry has been quite thrilling in both the challenges that many contractors and suppliers faced and the new inventions and innovations that have given rise to new techniques and improved work efficiency. Rising from the previous global recession, the construction workforce is finally back to its pre-recession numbers but is still experiencing a labor shortage due to the increase in construction projects.

Beyond these internal changes, a lot of external factors have also changed the way we conduct our construction operations. While the construction industry does not have the best reputation when it comes to technology, the past decade has shifted some construction processes into digitization. This is largely due to the increased accessibility of technology as well as the competitive edge that they provide. The growing impact of the industry on the environment has also prompted construction operations to cut harmful emissions and use more sustainable materials and green practices.

Because the construction industry plays a major role in driving the economic growth of a country, it is important to stay abreast of the current industry trends that can give us a glimpse of the future. Keeping up with the top trends in the industry is key to keeping your firm competitive and getting you prepared for what is to come. Here are some of the trends that will shape the construction industry in this new decade. 

Automation and Safety

The construction industry is shifting towards automation and will continue in the next decade. One of its driving forces is the need to generate better solutions to the industry’s safety challenges. Construction work has always posed risk to field workers as it involves the handling of heavy machinery and working in less than ideal conditions. Automation is able to eliminate these risks by increasing the accuracy of data collection for better decision-making and reducing human presence on construction sites, especially during the pre-construction phase. 

Drones are one of the emerging automation technologies that have found an impactful application in the construction industry. Unmanned Aerial Vehicles (UAVs), commonly known as drones, are useful for surveying job sites and ensuring inspectors and construction workers are kept out of potentially dangerous areas and situations. They can be inspected with cameras, GPS, and numerous sensors that enable workers to survey construction sites and conduct measurements in a safe location. 

Sustainability and Green Practices

The increasing environmental consciousness among the general public means that the demand for sustainability and green practices will go beyond compliance with government regulations. Because of this, green construction will definitely flourish as more construction stakeholders look for ways to incorporate sustainability into the construction processes.

Sustainability and green practices will start with the design decisions of construction firms. Because design has a long-term effect on the environmental impact of a structure, construction firms will incorporate design choices that will not only minimize a building’s environmental footprint but also create a positive impact on the well-being of people and the environment. These design decisions include proper insulation to reduce the energy needed to heat up and cool down a structure, incorporating natural light to reduce lighting needs, and bringing fresh air from outside through proper ventilation.

Another emerging trend that will see widespread use in the next decade is prefabricated construction. It is the practice of assembling some parts of a structure on a separate manufacturing site and transporting them to a construction site. Unlike traditional assembly methods on-site, the waste produced in prefab construction can be recycled within a manufacturing site. More accurate cutting in a controlled environment also yields less waste. 

Digitization and Cloud Technology

A quick look at other industries shows the extent to which digitization has changed traditional practices for the better. It is inevitable that the construction industry will move towards digitization as a solution for productivity and efficiency challenges. This digital transformation will be driven by building information modeling (BIM), virtual reality (VR), and cloud technology.

Building information modeling or BIM allows multiple stakeholders, including architecture, engineering, and construction professionals, to collaborate through computer-generated images and models and visualize construction information and facilitate decision-making. Through BIM, construction professionals can estimate the amount of time, labor, and materials needed to finish a project and help contractors optimize long-term costs.

Like 3D modeling, virtual reality is another way to visualize construction information but it places the user directly inside the virtual environment. VR gives construction teams the ability to “see” a project even offsite, improve the flow of communication, ensure accuracy, and reduce rework.

Cloud technology, on the other hand, enables construction businesses to streamline many construction processes. Tedious construction activities such as sending preliminary notices and managing liens become easier by using dedicated software to automate some tasks. This frees time for key personnel to do more productive tasks that have a direct effect on their company’s bottom line.

The construction industry is undergoing a transformation. The changing technological environment and the demand for sustainable business models will bring about a revolution. As a new decade begins, it is up to construction business owners to prepare and shape a prosperous future for the industry. 

Patrick Hogan is the CEO of Handle.com, where they build software that helps contractors, subcontractors, and material suppliers with late payments. Handle.com also provides funding for construction businesses in the form of invoice factoring, material supply trade credit, and mechanics lien purchasing.