The construction industry is making a great recovery post-pandemic and will definitely continue in the next years or so due to the government’s American Jobs Plan. Data shows trillions of dollars to spend in this industry alone. The focus to improve infrastructure to cope with the changing environment will consequently create thousands of jobs that will surely be helpful to the people, and then the economy as a whole. However, it is important to note the current situation of the industry now and how ready they are to take on this huge demand from the government. There are 4 key issues that were identified that are worth discussing.
One of the issues is the pricing. Some construction companies haven’t done well in pricing their services post-Covid. Keeping in mind the challenges in the supply and demand chain internationally, the prices of the materials and equipment should follow along. Low profits would mean delayed growth. Another point to look at is how well the companies are coping with the new technology. With the health guidelines limiting workers in job sites, connectivity and efficient data records can increase the productivity of the contractors. Not to mention that more and more clients favor companies that use advanced technologies.
The construction company’s growth for the next decades is absolutely huge with the proposal of President Biden’s infrastructure plan, therefore awareness of these core issues is extremely important.
In a recent article from For Construction Pros, they write: “Construction pricing is highly sensitive to supply and demand. While the construction market slowly makes its way back to pre-Covid levels, many contractors have been pursuing riskier projects at lowball fees to keep their workers employed. If contractors continue to choose to pursue these low-profitability projects into 2022 and beyond, the construction industry will find its recovery delayed as the overall market heats up.”