Construction Industry Trends (2024)

Madrid, December 1, 2023.- The integration of cutting-edge technologies such as 3D, BIM, Artificial Intelligence, virtual reality, and mixed reality platforms within the construction industry supply chain stands out as a the most remarkable key success factor for 2024. Additionally, the public investment trend in construction, upwards or downwards, will be a pivotal factor for analysis on a country-by-country basis.

Private investment in the construction sector is anticipated to remain vigilant, with stakeholders closely monitoring macro and micro variables. Fluctuations in raw material prices, negotiation dynamics with suppliers, and the meticulous selection of top-notch professionals for each responsibility area will be critical variables requiring very careful management.

This concise overview of potential developments in the construction sector for 2024 prompts me to highlight the predictions advanced by Consulting as follows:

1. Equipment

From wearable equipment to mining dump trucks, it’s no secret that equipment is the key to succeeding in the construction industry. Technology will undoubtedly shift how the industry approaches each project, but the tried and true ways of making it happen are still as important as ever.

2. High Demand for Green Building

The shift away from traditional materials and toward sustainable building dominated 2023 and will likely continue to evolve as we move further into 2024.

This is partially due to heightened consumer focus on the environment and government-sponsored plans to build sustainable infrastructure and cities for the future. Research suggests that more than half the population will live in cities by 2050, and the push for climate change reform extends beyond government regulations and into the private sector. Before long, many construction companies will need to use these materials to stay competitive.

However, these materials cost more than their counterparts, and inflation doesn’t do us any favors. Although inflation is expected to subside, smaller companies that can’t afford the upfront cost might be priced out of major contracts unless they have relationships in place that can provide liquidity.

3. Technology Adds a Competitive Edge

From 3D printing to robotics, construction technology has undoubtedly changed the industry forever. It’s allowed for greater efficiency when building, streamlined project management, and more transparent surveying, all of which greatly benefit a business’s bottom line.

The construction industry stands as the 2nd least digitized industry, but it won’t stay that way for long. In 2023, around ⅓ of construction companies reported to have used AI and prefabrication technology in the last 12 months. 2 out of 5 industry professionals have plans to purchase/upgrade their construction management software in the next year. Both numbers are expected to grow immensely in 2024.

Soon, the disparity between those with this equipment and those without will be a major pain point for startups and newer businesses looking to compete. While some might be able to get around it with creativity and intuition, it’s easy to see how having this equipment can streamline a project.

4. Training Employees

Almost every construction company has dealt with an open position that remained unoccupied for far longer than they anticipated. Challenges surrounding finding and retaining quality talent will continue into 2024, but businesses are starting to get creative instead of frustrated over the wording of their job descriptions.

Training, apprenticeships, and certifications will help construction companies build the workforce they need to succeed. Inexperienced team members can be transformed into experts in their craft, and business owners can reward their loyal employees by furthering their professional development. It’s a win/win that you’ll likely see much more of in 2024.

5. Worker Safety

Worker safety has often fallen to the wayside in exchange for higher productivity and efficiency, but this is unlikely to continue. Simply put, too many workers have suffered injuries on job sites in situations that could have been prevented, which is pushing unions and business owners to make a change.

From more frequent inspections to better safety guidelines and equipment, expect job sites to become much safer in 2024. Technology, certifications, and having the right people will drive this trend. It won’t be cheap, but doing it the right way will yield positive ripple effects across the industry that will save lives, time, and money.