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  • Writer's pictureA. Alberto Lugo

Changing Patterns in the Construction Sector

Several current developments within the construction sector are expected to persist. Among these is the escalating price of primary inputs. Since August 2021, the cost of raw materials has risen by more than 100%. In addition, the Internet of Things (IoT) is another growing innovation that promises to enhance connections and cut expenses.


On average, the cost of raw materials for EVs was $8,255 in May. The rising prices of lithium, cobalt, and nickel are mostly responsible for the increase from March's $2,000. These components are essential for the production of batteries. However, traditional automobiles powered by internal combustion engines had price increases of 106% even before the rise in the cost of these inputs. Among August's costliest raw materials, steel and aluminum are now among the cheapest.


Increases in the cost of production are a major contributor to overall cost increases in the global economy. A lack of available supplies is hindering the production of low-priced items. In response, producer prices increased in most economies. The US manufacturing PPI, for instance, increased to 127 in September from 110 in August. The global economic recovery appears to have peaked, and supply limitations are expected to last at least through 2022.


Due to a severe scarcity of qualified personnel, the construction business's cost of labor has skyrocketed. Because of this, property prices have risen, building periods have lengthened, and construction expenses have grown. Therefore, many constructors are worried about the expense of labor. There has been a 25% increase in worry about a shortage since 2011, and that number is only likely to climb by 2022.


Both the supply and demand chains in the construction business affect one another. Therefore, the project's whole life cycle and supply chain may be impacted by a lack of a suitable labor match. For instance, in late 2021, business owners reported 25 percent delays and incompletes due partly to the difficulties in locating qualified labor.


With the help of the Internet of Things, building businesses can keep a closer eye on their employees and cut down on workplace mishaps. For instance, construction workers' health may be monitored with great accuracy using wearable technology. More importantly, it may warn authorities when risks are present. Smart glasses may also be used to keep an eye on building sites' requirements.


Owners are beginning to see the value in the Internet of Things devices, despite the building industry's notoriously delayed adoption of new technologies. Recently, businesses have seen the value in implementing these tools. In addition, some users have seen lower maintenance expenses, which is great news for construction business.


The building time and budget can be reduced using a modular approach. Since modular construction eliminates the need for on-site labor for as much as 80 percent of the project, it also helps save money on energy and maintenance. Greener practices may be used in modular buildings as well. For example, it is recyclable, requires less energy and water, and has a lower environmental impact.


The modular building also works well in congested metropolitan areas, a major plus. However, staging and transporting items may be a major pain under these conditions. It's inconvenient for the workers, and it may even encourage stealing. However, constructing modules off-site in a factory has the potential to improve the safety and cleanliness of construction sites. In addition, they provide greater room for employees to roam about in.


The construction sector is experiencing a technological revolution as the need for trained laborers rises. Thanks to the rise of remote work, workers may now complete their tasks without ever leaving their homes. Drones, for example, may survey a worksite rapidly and precisely, documenting progress while photographing any dangers. They may build as-built models as well.


The construction industry generates about 13% of the global GDP, making it a vital component of the economy. Despite this, many building sites have shut down, and the ones that remain open have had to deal with operational constraints and shattered supply networks. The industry's financial index performance has reflected these difficulties.


Although automation has been heralded as a potentially game-changing tool in the building sector, many significant obstacles prevent it from being widely used. First, an inadequate labor force is a major issue. One such factor is the absence of proper education. One last thing: resistance to change. A lack of a compelling business case is another problem.


Fortunately, automation has a few other advantages. For one, it facilitates a decrease in workplace stress and human mistake. Second, it lessens the time spent working, and the hazards workers face. Third, experts in the construction industry may also reap the benefits of this system by delegating the bulk of their work to the robots and focusing instead on management and oversight.

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