8 Construction Industry Trends for 2023

Over the past few years, the construction industry has undergone some drastic changes. The pandemic changed the way many companies went about their operations, and the rise in technological and safety advancements has had direct impacts on the way construction companies run their projects.

In this article, we’ll take a look at the eight construction industry trends to keep an eye out for in 2023.

1. Procurement Will Continue to Drive Construction Schedules

Construction management firms are very aware of the fact that the pandemic resulted in significant supply chain issues and project delays. 

In past years, schedule concerns were primarily driven by labor. Now, those concerns stem primarily from procurement. Construction projects may be delayed due to the long lead time on items such as:

• Generators
• Transformers
• VFDs
• Mechanical equipment

Construction processes may evolve so that they are more agile. Project management and on-site superintendents will need to continue to work with subcontractors to sequence around long-lead items and procurement delays. Utilizing construction software like Avvir can help you keep a better pulse on your critical path and immediately recognize schedule slips.

2. Escalation Will Remain a Concern

The cost of construction materials also rose during the pandemic. Though inflation has shown signs of easing in 2023, contractors must still be mindful of rising costs, especially on long-duration projects. Construction firms should be mindful to discuss material escalation with contractors during the buyout and contractual phase of the job.

There are also other external factors that may result in material cost increases on construction projects. For instance, the United States will soon implement a 200% tariff on Russian aluminum. This could impact the cost of everything from ductwork to equipment.

3. Construction Technology Will Improve Efficiencies

Construction technology and data collection within the industry will become more prominent. For instance, Avvir offers a one-stop-shop solution to track construction projects in real time.

When using Avvir, you’ll have the option to upload your Building Information Model (BIM), project schedule and schedule of values.

Then, as work begins, you perform live captures of your job site using LIDAR scans or 360-degree photos. Once the live capture is uploaded, the Avvir platform will evaluate your actual progress and install accuracy. You can then use this information to:

• Measure work in place and schedule progress
• Verify subcontractor requisitions by comparing work in place to the work billed
• Minimize future rework, thus potentially cutting down on construction spending
• Record as-builts in real-time

This information can improve project management workflows and make for more efficient projects. Other new technologies to keep an eye out for on construction sites are:

• Robotics
• Drones
• 3D printing

4. Existing Real Estate Will Be Converted

Another trend across various construction sectors is the rise in existing real estate conversions, especially in cities. As many employers downsize their office space, cities are left with vacant buildings. Many owners have taken to converting these spaces for other uses, specifically lab space.

Take for instance this scenario in Boston, where owners are converting existing Lord & Taylor stores to lab space.

The aforementioned digital transformation that has taken place in construction could also be useful in this scenario. For instance, general contractors could take a scan of an existing space to identify deficiencies. They could then use this scan for the purpose of creating an accurate building information model. Subcontractors can work to model the new design while working within the footprint of existing conditions that are known to be accurate.

5. Mergers and Acquisitions May Occur Within the Industry

There have been a lot of entrepreneurial startups within the construction industry over the last few years. When discussing Hexagon’s recent acquisition of Avvir, the site For Construction Pros noted, “the construction industry should expect to see more of this type of merger and acquisition activity as the market shakes out in sectors with heavy entrepreneur activity, as venture-funded startups align with larger entities with broader distribution and a broader product offering.”

6. Modular Construction Will Continue to Rise

In the coming years, there will be an emphasis on modular construction for new construction projects. Modular construction occurs when a majority of the building structure is built offsite. After it is built, it is transported to the job site. Pipe prefabrication would also technically be considered a type of modular construction.

Modular construction can be beneficial for a few reasons. First and foremost, it can cut down on the cost of building materials. Because most of the work is drawn ahead of time and produced in a controlled environment, the likelihood of rework is reduced.

Additionally, modular designs can help keep construction workers safe. By working in a controlled environment, workers can better manage their safety efforts than when in the field. At a time when the construction industry faces skilled labor shortages, the ability to keep workers safe can have a drastic impact on a project.

7. There Will Be an Emphasis on Green Building

More and more companies have recently emphasized sustainability. That has impacted construction projects in recent years and will continue to do so moving forward. Owners may request an emphasis on energy efficiency, which will impact an engineer’s design.

Additionally, construction firms may focus on sustainability on actual job sites. For instance, there may be an effort to cut down on greenhouse gas emissions by using renewable energy when possible.

While owners or construction firms may make these requests, some may also be driven by changes to the law. For instance, Boston has proposed becoming a carbon-neutral city by 2050. If these laws are passed, the construction market as a whole is going to see tremendous changes to their designs and the way in which they operate.

8. Recent Safety Options Will Become More Mainstream

The recent construction industry trend that emphasized safety will continue to grow. One of the areas where we are likely to see drastic improvements is with the helmets construction workers wear while on site.

Kask and HexArmor are examples of two companies with revolutionary helmet designs that started to appear on job sites over the last couple of years. These helmets may not only help in cushioning head blows, but they also come with visors that eliminate the need for safety goggles while still keeping workers safe.

Construction Industry Trends Will Evolve in 2023

Over the past few years, we saw a dramatic shift in construction trends. The pandemic changed the way construction firms operated. Digitalization and things like BIM became more commonplace.

In the coming year, those trends are expected to continue. Procurement will continue to drive construction schedules and the cost of building materials will continue to remain a concern. However, many of the most important trends will focus on technologies and streamlined efficiencies.

No matter which trends you follow, using tools like Avvir is the best thing for your construction project. Giving your team the ability to measure on-site progress, capture as-built conditions, and catch install issues is a game changer, and Avvir can help streamline those construction processes. If you'd like to learn more, reach out today and request a demo to see how we can help your project run on time and on budget.