The year 2022 began on a positive note for the construction industry. There were a few hiccups, despite that the global growth was impeccable. And now that the industry is welcoming the new year, there are a sea of opportunities that contractors, agents, and investors can explore.
Understanding the industry trends and forecasts is quite important to grab these opportunities. It will enable businesses to tap into the global sector and boost brand awareness.
That being said, below are the construction industry predictions for the year 2023.
Global Investment Opportunities
Investment in the construction industry is a great way to balance high-risk stocks and boost the portfolio. Housing and infrastructure developments are on the rise all across the globe. It offers a handful of perks to investors, especially on an international level. Take the construction industry in Italy, for example.
Under the NRRP (National Recovery and Resilience Plan), the government will receive approximately 233 billion dollars for 2021-2026. These funds will be utilized for healthcare and infrastructure. So, investors are likely to reap the return on investment with the sector’s growth.
Additionally, the government is attracting global investors with various citizenship programs. Among all, the Italian Investor Visa is certainly the best option for investors to avail the residency option and EU rights. Such investment opportunities for the construction business will undoubtedly boost ongoing or future projects and offer gains.
Use Of Artificial Intelligence
Artificial intelligence (AI) is reshaping every industry, and the construction industry is no exception. Using AI, companies and contractors can avail extensive data to make data-driven decisions and predictions.
It could be used to create construction schedules inclusive of real-life scenarios, lower the impact of uncertain events, and provide timely project delivery. Similarly, AI can be used for all purposes, from image recognition and analyzing job site material photos to identifying risks and workers’ behavior.
Nevertheless, an understanding of machine learning, algorithms, and automation are necessary to use AI effectively.
Improvement In Supply Chain
This industry has seen a significant downfall in the last few years, especially during 2020 and early 2021. There were labor shortages, transportation barriers, geopolitical risks, and unavailability of materials. However, all these shortcomings aid in improving the industry supply chain.
Now, the industry is adapting the new business models which deploy technology to revamp the ecosystem. It will push innovation in the product & services while addressing the market needs.
When the supply chain improves, it will ensure project completion, affordability, and overall growth in the sector.
Focus On Employee Retention
Finally, the shortage of skilled labor has been a consistent challenge for this industry. Even though businesses manage it well, the limited workforce creates numerous challenges, especially turnover risk.
Fortunately, now companies and contractors are focusing on employee retention by providing adequate wages, adding employment perks, and providing appropriate resources to retain them. They are further using technology to lower the burden on labor and boost productivity.
To Sum It All Up
The construction industry adapts to global trends at a slow pace. That’s why the growth rate of the industry is low. However, it is slowly but surely progressing. By taking into account the predictions for 2023, investors, agents, contractors, and others can accelerate the development and yield RoI.