2016 is poised to be a beautiful year for the construction industry. So kick back, relax, and get a glimpse of the top trends that await you in the New Year:
U.S. construction expected to grow 6% to $712 billion
“The expansion for the construction industry has been underway for several years now, with varying contributions from each of the major sectors. For 2016, the economic environment should support further growth for the overall level of construction starts.” – Robert Murray, chief economist, Dodge Data & Analytics
Contractors can look forward to industry growth continuing in 2016 as construction spending is expected to total $712 billion, a 6% increase, according to Dodge Data & Analytics. Key growth sectors include:
- Commercial building: Expected to rise 11%, led by office construction activity. Greater investment from the technology and finance industries is expected to drive.
- Residential building: Single family housing will jump 20% in dollars, resulting in a 17% increase in units (805,000). Multi-family housing will rise 7% in dollars and 5% in units to 480,000. Improved access to home mortgages and stronger demand for apartments from Millennials are key drivers for these two.
- Institutional building: A 9% rise in spending is anticipated in 2016, supported by more construction of K-12 school facilities.
Construction pay to increase 4.63%
As building activity increases, so will wages.
Engineering News-Record recently surveyed 253 construction executives, including designers, general contractors, subcontractors and construction managers, about employee raises for the upcoming year and the expected average increase will be 4.63%. Diving into the adjusted data, subcontractors and specialty trade contractors are expecting to reward employees with a 4.25% average increase, the largest of the firms surveyed. Of the executives who responded, 72% have plans to increase their staff size, with project managers being among the most sought-after positions.
Technology in the field is going from a perk to a necessity
Construction jobsite technology has quickly evolved from nice-to-have tools to must-have tools in the success of construction projects. With the growth projected for 2016, paces kicking up, projects growing more complex, and staffs growing larger, tools like FieldLens will keep companies organized and moving as fast as they want to go.
Daily reporting, quality assurance, punch lists, safety controls, manpower reports and much more, are going digital and the processes themselves are evolving rapidly as contractors of all sizes find more efficient ways of getting the job done. 2016 is looking pretty great from here.