Global Construction Industry Trends for 2022
The pandemic has dealt a heavy blow to the construction industry—however, as we approach 2022, it seems that the industry is already making a steady recovery. Global mobility plays an important role in facilitating international construction projects, and many projects wouldn’t be possible without foreign expertise. Therefore, here are some of the global construction industry trends to look out for in 2022, the challenges that might arise, and how Clearmove’s relocation solution can help our supply partners streamline the relocation management process.
Construction Industry Trends
The pandemic has created a myriad of issues for the construction industry, namely supply chain issues and material shortages. However, it’s been making a slow recovery during 2021, and we can expect a decent recovery by 2022.
In the UAE, experts have expected that the local construction industry will register an annual average growth of 3.9 percent from 2022 to 2025, with numerous high-end residential projects well underway. In October 2021, the UAE government announced that over 11,000 new residential units are being constructed across the country as part of the Sheikh Zayed Housing Programme.
Meanwhile, in Germany, nominal sales are forecasted to rise by 5.5 percent in 2022—according to a report by Reuters, employment in German construction is projected to increase by a further 10,000 to 915,000 jobs in the coming year. While things are slowly picking up the pace, the pandemic also changed the construction industry in different ways.
Firstly, the labor shortages. Labor shortages have long been an issue in the construction industry, and the issue will likely persist well into 2022. An aging workforce, the lack of trained professionals, the pandemic… there are a lot of factors behind the shortage. According to a report by Deloitte, while the number of job openings has doubled since 2014, the number of new hires only increased by 14 percent, which is a worrying sign.
According to another report by Business Insider, the US construction industry needs 2.2 million more workers in order to keep up with the housing demand amid labor shortages.
There are different ways to cope with this issue. One of which is to provide more competitive packages in terms of wages, benefits, and training. However, it is also possible to acquire qualified talents from overseas, something that can be assisted by Clearmove and its integrated relocation solutions.
The construction industry, like many others, also started to embrace digitalization and automation during the pandemic. On-site manual tasks (such as bricks laying) can be carried out by robots instead, and administrative tasks such as payroll management and tax compliance can also be automated, which is something we’ve been doing at Clearmove.
“A growing trend is the use of collaboration technology to connect site and office teams,” said Patrick McCowan, chief operating officer for Gray, a leading construction firm in Lexington, Kentucky. “From quality audits to smart construction software, processes are trending toward digital job sites.”
According to a report by Deloitte, Engineering and Construction (E&C) firms in the US acquired as many as 27 targets across the software, electronics, technology consulting and services, and motion picture fields as part of their digitalization strategy between August 2020 and 2021.
It is likely that in 2022 (and the foreseeable future), more and more tasks will be delegated to machines and computers, lowering the cost while freeing up valuable resources for other more important matters. The best thing about it? It can be applied to different aspects, and it is extremely scalable where it can be incorporated regardless of the company size.
As the global construction industry is recovering, the demand for foreign expertise and labor will only increase. Here at Clearmove, we understand the importance of a safe and reliable relocation management solution.
We have developed Paradigm, a relocation management platform for our supply partners. From invoices to service provision management, everything can be managed through the platform. The platform is also connected to Voyager, an application we have developed for assignees, and Atlas, another platform we have developed for HR and mobility managers, to further streamline the relocation process. Take a look at this article to understand how Paradigm can help you manage different assignments with ease.
Interested in the Clearmove experience? Do not hesitate to contact us for a demo today!