What’s New For 2021 In The Property & Construction Industry
After the last 12 months of disruptions, having to adjusting financial forecasts and changing expectations, 2021 will be a year of change and growth in the property & construction industry with some saying it has to be.
Increased construction costs and labor shortages persist due to lack of immigration and seasonal workers, this challengers the industry to innovate with new ideas, while uncertain and changing landscapes around property investment rules provide more uncertainty.
So lets look forward to what trends will emerge (or need to emerge) in the aftermath of this uncertain pandemic. New tech continues to change the project implementation, improves the ability to win projects, and work harder to increase profit margins.
As our industry becomes more competitive, with potential for increased government spending on infrastructure and changes within the market, harnessing new construction trends will prove valuable for any company.
At JC Project Consulting Ltd we look at new ideas and ways of delivering your project with all the challenges identified. As Development & Project managers we understand the importance of producing a quality offering to the market no matter what your outcome is.
We have identified a few trends we think should be important in 2021.
With price increases in building materials continuing to be present and a lack of serious competition in the market there is no end in sight for how high will prices go.
Also the lack of overseas products being approved by BRANZ and will a small market the larger suppliers in Australasia don’t see New Zealand as a big enough market especially when regulators expect them to jump through hoops.
On top of that as of 28th March 2021, the Container ship the Ever Given is currently blocking the Suez Canal which is used to transport between 10-15% of the worlds goods around the globe so whilst the world trys to keep moving after Covid19 this is what we didn’t need.
Then it comes to material shortages recent announcements like below certainly dont help the industry.
2. Protective Equipment
COVID-19 had a dramatic affect on the construction industry especially with construction site guidelines by way of new regulations ensuring cleanliness and strict safety protocols. This also includes increased overheads on projects, adding additional cost and time to projects that were already underway pre Covid19.
So what for 2021? Will we see the use of new ways of automation like overseas where machines capable of identifying common safety issues and eliminating those threats one at a time.
Where 3D printing continues to skyrocket, resulting in decreased transportation risks, and sensors that detect noise, heat, and wind at construction sites provide warnings to evacuate construction workers and move costly construction equipment in the event of an emergency or natural disaster.
3. Remote Works Site & Network Access
Mobile applications in the construction industry allows worksite access like never before possible, including real-time inspections, on-site accountability, and accurate measurements taken from a mobile phone camera.
COVID-19 mandated that teams continue to collaborate without physical access to materials, spaces, or even other teammates. The use of MS Teams, Zoom and other platforms that allows for public approval meetings to take place virtually so that public projects can continue to move forward without in-person gatherings.
Those without complete mobile connectivity will be at a productivity and sales disadvantage going forward. Also on a recent experience of accessing a project in a remote location was the suggestion of GPS tracking equipment for employee safety.
4. Modular & Offsite Construction
The modular construction market led by the residential sector, is predicted to expand significantly however due to labour shortages and council associated compliance this sector needs to be shaken up. With a country that requires low cost housing surely this is an sector to be prioritised.
New technology also allows these prefab and modular buildings to grow larger than ever before. The 21-story CitizenM Bowery Hotel, opened in downtown Manhattan in 2019, is now the tallest modular construction project in the United States so surely multilevel buildings can be done here.
Overseas the prefab industry hasn’t been spared by the COVID-19 pandemic, with some manufacturers shutting down to address the shortage in large-scale, hospitality-focused modular construction.
However, as a whole, offsite construction isn’t going anywhere. Modular projects offer the ability to better regulate employee safety in climate-controlled, ventilated environments, making them ideal for social distancing requirements implemented in locales everywhere.
5. Green Buildings & Homestar Ratings
With all the uncertainty of cost of materials increases, availability material supplies and Covid19 what is the impact on building Green and achieving Homestar standards?
Well a few things haven’t changed, we still have a climate change emergency so sustainable design and building practices will still need to continue. Yes the materials might be later than planned and cost more but there is opportunity to look at new innovation, look at alternative construction methods and materials.
2021 could be the year of change that the industry has been looking for. Can the government move fast to remove red tape and incentivise developers further in the low cost housing market? I guess we will see.