By Mark Drury, Shapiro & Duncan
The Rise of Construction as an ‘Essential’ Industry, Continued Opportunities for 2021
While the COVID-19 pandemic has brought significant impacts to nearly every facet of life and business in 2020, it has also spurred the emergence of key trends and opportunities for future growth, particularly in the construction industry. The ‘new normal’ of the pandemic era has rendered construction work a ‘safe haven’ for displaced employees from industries hit hardest, such as retail, hospitality, and travel, and increased the demand for re-skilling of talent, changing the shape of approaches to recruitment, training, and nurturing the next generation.
Going forward into 2021, we expect the growth and dynamism the construction industry has seen in 2020 to continue to expand. As we threw out the old rulebooks and the formerly-developed strategic plans to pivot to meet the new challenges, a wealth of possibilities opened up that are changing our industry for the better. To follow are top growth areas for the construction industry that will be instrumental into 2021.
The Changing Face of Workforce Dynamics: New Approaches to Talent Development and Mentorship
From the onset of the pandemic in the spring of 2020 through the rest of the year, a number of previously robust industries suffered irreparable damage. Businesses across the retail, hospitality, and travel industries were severely impacted, with legions of employees left displaced and searching for their next move. Enter the construction industry, where work continued– providing an opportunity for these groups to re-shape their careers and their futures.
Introducing the opportunities for success in the construction industry to this pool of displaced workers requires the construction industry to pivot and modify the ways we approach talent recruitment, development, training, and mentorship. Leading trades, such as carpentry, and the licensed trades, including HVAC, plumbing, and electrical, continue to be in highest demand and for new entrants to the construction industry. New online certification and remote apprenticeship programs broaden this path industry-wide.
Some key areas where the industry has had to re-imagine its approach to ensure long-term growth include:
- A solid on-boarding process;
- Industry skills and certification bootcamps;
- Online apprenticeship training;
- A formalized mentorship program; and
- Career path mapping.
Training has also undergone changes as the employee pool has evolved. Digital learning tools and virtual/augmented reality technology, and the increased prevalence of video conferencing platforms have created new ways to interact. The main elements of the shifts in training seen in 2020 and set to continue into 2021 include the following:
- Reduced barriers to changing careers and achieving new certifications, through remote technology and workforce re-training tools;
- Increased focus on key growth areas, such as prefabrication and volumetric modular construction;
- Additional boot camp and short-term training opportunities; and
- A break from the norm of a typical apprentice model. Instead of a focus on classroom time and hours in the field, the new model is rooted in performance assessments and prioritizing skills and achievement milestones without being restricted by time.
The Future of Site Safety and Project Planning/Execution
Throughout this year, the construction industry has continued to be viewed as a positive, forward-looking field with promising opportunities for future growth. Much of this perception stems from the successful efforts the industry has made to ensure top levels of safety on job sites that has enabled work to continue, including:
- The purchase, distribution, and adoption of hand sanitizer and appropriate Health Safety PPE;
- Addition of field sinks/sanitation stations and required physical distancing;
- Adjustments to work schedules for trades teams, i.e. four 10-hour days vs. five 8-hour day weeks to reduce overall risk of exposure by 20% on a weekly basis and provide a 72-hour window for jobsite decontamination; and
- Prioritization of teams’ health and safety.
In terms of project planning and execution, a number of shifts have occurred in order to accommodate new workers and meet rising demand. Proactive approaches to challenges, such as equipment and material delays and the resulting impacts to schedules and integrating new, reskilled/displaced workers into the workforce ensures that minimal negative effects take place.
The Rise of Modular Construction and Design-Build Projects
When are things going to be back to normal? Never! We are experiencing the evolution to a new normal and one that we will recognize as temporary, a place holder, which will continue to change sometimes a little and sometimes a lot. The pre-COVID ways of living and working are gone, but in that void new opportunities arise and this creative industry will harness innovative ways to leverage our tools, expertise, and technology as the construction industry forges ahead.
Demand for technology will grow into next year, as will the addition of robotics where appropriate to increase capacity. Volumetric modular construction and design-build projects will increase in prevalence, along with demand for office modifications, i.e. wider hallways, low wall partition screening, HVAC modernizations, touchless fixtures and others, as workforces return to in-person operations.
Offsite construction, prefabrication, and multi-trade modular construction throughout 2020 have become a more essential component to the building process. In a manufacturing setting you can control the environment with indoor air quality modifications and manage the spacing of work stations for separation and better monitor compliance with new health safety protocols.
The construction industry will continue to play a starring role in the rising demand for properties to fit new and purpose-built functions, and ensure buildings have opportunities to more tightly control social distancing and cleanliness on a day-to-day basis.
Looking Ahead to 2021: Key Opportunities and Projected Growth Areas
As 2021 approaches, and the end of 2020 arrives not a day too soon, we should also remember that our situation continues to evolve. Adapting and pivoting will remain as key tools to survive and thrive. To achieve lasting growth and success into next year, it will be critical to engage the new challenges and embrace the opportunities they present. Prioritizing the right technological innovation, talent recruitment and management, and rising to meet the demands of new projects and needs will ensure your organization has what it takes to thrive in 2021.
About the Author
Mark Drury is the Vice President of Business Development at Shapiro & Duncan. He brings more than 40 years of experience in construction management and oversees the company’s corporate development, contracts negotiation/management, and production of marketing and sales materials. Mark is a past Chairman of the Board of ABC Metro, is a LEED AP and Designated Design Build Professional. He completed his undergrad studies in History at Shepherd University and graduate coursework at Princeton and Clemson Universities. For more information about Shapiro & Duncan, please visit www.shapiroandduncan.com.