The construction industry continues to experience growth due to the strong economy but also faces many challenges. Shrinking profit margins, changing safety rules, and rising labor costs continue to pose significant challenges for construction companies. Here are the top seven issues facing the construction industry today.
#1 Lack of Labor
The construction industry continues to struggle to find labor due to many workers finding work elsewhere or choosing to retire. Tech-savvy millennials continue to work in other sectors, which puts a further bind on the construction industry.
#2 Safety Concerns
The safety of employees continues to be a major concern for construction workers. The construction industry continues to lead all other workplaces with the total number of deaths and is a significant concern for prospective workers.
#3 Lack of Technology Adoption
Many owners in the construction industry continue to underinvest in technology. The lack of technology adoption hurts productivity and makes it more challenging to complete tasks on time.
#4 Productivity Issues
The construction industry has seen very little improvement in productivity compared to other industries. Stagnant productivity levels make it difficult to earn more money and improve the bottom line.
#5 Extended Wait Time for Project Approvals & Permits
Many people in the construction industry must wait an extensive amount of time for project approvals and permits. All of this waiting around limits productivity and makes it difficult to make a profit.
#6 Going Over Budget
A wide range of factors can impact your budget and make it challenging to avoid additional costs. Order changes, delays, and fluctuating material costs are only a few examples of budget concerns.
#7 Site Conditions
Many times a project is delayed due to the site condition. These delays can be wide-ranging, such as bad weather, buried debris, or large amounts of unexpected rock. Additional time is needed to get the site condition back to a working state.
Working in the construction industry is a challenge due to a wide range of issues. Always keeping up with the latest technology and creating a safe work environment can help you avoid many of these problems. Learning how to reduce these risks is also key to making a profit and overcoming these common challenges in the construction industry.