With fluctuating economic trends, rising inflation, and supply chain issues, the construction industry remains the most volatile. In addition, with the constant, near impossible-to-predict market disruptions, there is a continuous rise in project and material costs. Why does this matter?

Market volatility drastically impacts project overrun, delays, risk factors, and quality control – and the construction industry was hit especially hard during the pandemic and in the current aftermath state.

A Recent Poll

According to a recent poll conducted on LinkedIn, we asked our followers: What aspects of Capital Projects market volatility do you expect will impact your organization the most in 2023? We chose four key issues in the industry, and here’s what you had to say:

The Impact of Labor Shortages

Of all these market volatility trends, the one that stands out prominently is labor shortages. However, it’s not just an issue for organizations running capital projects. Labor shortages are realized across residential, commercial, industrial, and infrastructure projects. It is one of the biggest, yet understated challenges the construction industry will experience in the years to come.

During the pandemic, 430,000 more workers needed to be hired in the USA to meet growing demands, which is forecasted to increase in 2023. And according to recent forecasts, over 40% of the workforce will retire within the next decade.

The unspoken pressure of labor shortages across the construction industry forces contractors to increase resource wages and compensation costs to attract more talent. Even with these efforts, skilled craftsmanship is decreasing at a rate the construction industry cannot keep up with, impacting contractors’ ability to deliver their projects at a reasonable price. What does this mean?

Now more than ever, the construction industry needs to align with technology that attracts and quickly trains next-generation contractors while providing them with software tools that accelerate their ability to accurately record, report, and communicate the status of projects in real time. Agility is the key. To quickly adjust to market changes, client needs, and available resources, flexible and agile software solutions will help the construction industry adapt to unpredictability. However, finding the right implementation and managing partners are just as important as the unique solution itself.

Join The Discussion

In 2022, Project Partners added Kahua to help support our clients with solutions to manage capital programs and construction projects better. Project Partners and Kahua joined forces for an open conversation to share our experiences in transforming processes and related technologies to meet these growing construction industry challenges. 

Presenters:

Tamim Kulaly, VP of Project Execution Solutions | Project Partners

Terri Maginnis, Practice Director | Project Partners

Nicolas Johnson, Chief Evangelist | Kahua