CONSTRUCTION TRENDS 2023 1

Promoting And Embracing Sustainable Building

The construction industry’s role in the climate emergency is no secret. It uses 32% of the world’s natural resources and is responsible for 39% of carbon emissions globally. This is not only from creating new buildings but also from the energy used by existing ones. It is predicted that 80% of today’s buildings will still be in use in 2050. But 75% of this stock is energy inefficient. The construction industry has a long way to go to overcome its image as one of the world’s biggest carbon emitters. At COP26 in Glasgow, world leaders dedicated a day solely to discussing decarbonising and creating a more sustainable built environment. One of the most significant outcomes of the ‘Cities, Regions and Built Environment Day’ was the confirmation that 1,049 cities and local governments are now participating in the ‘Race to Zero.’ This is a UNled campaign asking cities, regions, businesses, investors, and Higher Education Institutions to hit net zero emissions. With the climate emergency front of mind for leaders worldwide, finding ways to reduce construction’s impact will continue to dominate the conversation in 2023.

Finding Ways To Overcome The Labour Shortage

Labour shortages in the construction industry have been an issue for quite some time. In 2022, the Association of General Contractors of America found that 83% of construction firms claimed to have difficulty filling positions. The situation is not too dissimilar on the other side of the Atlantic, where UK and European construction industries also face a lack of workers.

Shortages have huge impacts on projects, including:

→ Projects have difficulty getting started

→ Projects take longer than anticipated

→ Higher project costs

→ Inexperienced skilled labour or workforce shortages create health and safety challenges

Unfortunately, these human resources struggles are projected to continue in 2023.

High Material Costs Set To Continue

Over the last year, construction material prices have fluctuated, reaching all-time highs, and dropping again. Lockdowns in China, shipping container shortages, and the RussiaUkraine war exacerbated an already delicate supply chain. Cement, timber, paints, electrical equipment, and plastics costs rose as a shortage of materials impacted costs and created fluctuating prices throughout the year. In the U.S., before the pandemic, wood was approximately $300 per 1,000 board feet. But by April 2021, the price soared to $1,500. It then fell to roughly $500 before rising again to approximately $1,300. Prices fell in 2022 and were nearing $400 but appear to be rising to nearly $500. This price volatility impacted projects, with budgeting and scheduling near impossible. While many will hope to leave the high construction costs of 2022, the projected outlook for 2023 also holds uncertainty. According to Oxford Economics, global construction costs are set to remain high in 2023.