Top 5 things to know about the Construction industry in 2019
- Continued positive momentum expected across the sector. According to Associated Builders and Contractors Chief Economist, Anirban Basu, the construction sector is forecasted to have another strong year due to job growth, high backlog and infrastructure investment.1
- Growth in non-residential construction will come from certain key areas. While retail construction will continue to decline, most analysts anticipate that modest growth will be felt in office, manufacturing, educational and healthcare construction. With the 2018 passage of the omnibus federal appropriations bill, contractors should benefit from the increased funding for transportation projects and public works.
- Technological advancements continue to gain traction. From sensors, to wearables to drones, contractors are finding more options with lower costs. Technology can increase safety around the jobsite and provide actionable data on projects. Insurance carriers are excited that some of these technologies can help mitigate risk on the construction site.
- Modular and green construction will continue to be hot. Prefabrication and modular construction have become increasingly popular in 2018. Most analysts anticipate that the use of standardized processes and building off-site can cut down on costs and lead times. Industry surveys also show that industry players remain committed to having the majority of their projects green by 2021.
- Rising costs may be a drag on the industry. Low unemployment has created a construction workforce shortage and increased compensation costs. Both rising interest rates and material prices may be a drag on the market in the New Year.
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1 “2019 Construction Economic Forecast: Momentum Will Persist for Several More Quarters,” Anirban Basu, Construction Executive.