According to a new study conducted by 2018-2019 Vertical Market Series – Construction, released by Equipment Leasing and Finance Foundation, the foreseeable future for general contractors working in commercial and residential construction appears to be bright. The study lists out anticipated spending, sector confidence, and key developments and trends as some of the factors that can be anticipated in the US construction market sector over the next one to two years.
Here are some of the findings of the study:
- It is highlighted that near-term residential and commercial construction markets would continue to grow by 5% in 2018.
- An emphasis is laid on the role of automation and technology in the areas of productivity and safety, use of building information modeling, the impact of artificial intelligence and big data will make; and also the impact of the new policy regulations on contractors.
- The persistent labor shortage, which has been threatening the productivity, search for skilled workers, and increased offsite construction are also underlined.
An in-depth insight
The report shed light on several issues that could impact the construction industry. Impact of the corporate tax rate and how the prices of the materials would be affected by the tariffs imposed on steel and aluminum. Donald Trump’s administration has released $1.5 trillion tax reform bill which has further lowered the rate of 21% and set a pass-through deduction rate of 20%. This has led to a lot of discussion about how this will enable construction companies to reinvest those tax savings back into their businesses.
Building Information Modeling (BIM)
Those who have worked on the public projects might be familiar with BIM software. In the recent times, BIM software has become mandatory for construction jobs as it adds value to all kinds of construction jobs. A survey conducted by Boston Consultancy Group Analysts revealed that BIM will certainly be advanced enough to deliver productivity gains between 15% and 25% by 2025. Besides, one way that construction companies can ensure that they are getting the most bangs for their luck is through new technologies. For instance, contractors can keep better track of employee work patterns and monitor where materials are at all times through new mobile applications.
Overall, the outlook for the construction industry in 2018 is bright. Just like any other industry, the construction industry will have its own challenges to overcome. One of the best steps that construction companies take towards improving the business is by staying knowledgeable and keeping themselves open to new ideas and technology. Experts believe that construction will continue to evolve through 2018, and it’s up to construction firms on whether or not they want to grow with it.
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