Now that 2015 has come and gone, construction professionals are focusing attention on the year ahead. Analysts predict 2016 will be a strong year for the industry, as Dodge Data & Analytics’ 2016 Construction Outlook report predicted 6% growth, with the value of construction starts reaching an estimated $712 billion.
We talked with experts from various sectors of the construction industry to find out their predictions for 2016. Their answers varied from new technology trends, to workforce concerns, to homebuyer preferences. But one common thread connected all of the experts: They have high hopes that 2016 will bring strong demand and booming business.
“I don’t think I could be any more optimistic for 2016,” Bud LaRosa, chief business performance officer and chief financial officer for Tocci Building Companies, told Construction Dive. “These are truly the good times.”
Here are the top trends to watch in 2016, according to the experts:
1. Skilled labor shortage will continue to plague construction companies
The most commonly mentioned trend for 2016 was the continued effects of the skilled worker shortage. A significant portion of employees who left the industry during the recession never returned, and companies are still struggling to find workers at all levels to properly staff their teams.
“The overwhelming, number one issue is access to skilled labor,” Dominic Thasarathar, Autodesk’s senior industry program manager for construction and natural resources, told Construction Dive. “So many people left the industry or were laid off, and now there’s a real struggle to find the right people to staff the projects that are now coming online.”
The overwhelming, number one issue is access to skilled labor tweet this quote The labor crisis is not a new issue, and most experts predict it will continue well into 2016 and beyond, as the talent deficit will require multiple years to fill up again.
“Not only has the construction industry struggled to appeal to a younger, more technologically savvy workforce, but during the economic downturn, many companies opted not to bring in younger, newer talent,” said Tom Menk, an assurance partner with BDO’s national real estate and construction practice. “Now, that’s
causing struggles to fill that gap in the workforce, which is coupled with the need across industries for companies to replace retiring baby boomers.”
Another significant concern: The slowdown in immigration has contributed to the already existing labor shortage, as reports have found many workers who returned to Mexico during the recession have not come back to the U.S. due to increased immigration controls and more job opportunities in Mexico.
“I think politically, the environment against immigration has changed some of the workforce dynamics and made it difficult to staff a lot of the trades,” LaRosa said. “I think that trend continues. I don’t see that easing
anytime in the next two to three years.”