The construction industry is facing a number of difficulties, from the lack of qualified personnel to cost overruns and communication inefficiencies. These issues can lead to project delays, cost overruns, and safety issues, making it difficult for construction companies to succeed. In this article, we'll explore the ten biggest problems that construction professionals are facing today.
Shortage of Qualified Workers, especially those experienced in New York City Interiors.One of the most pressing issues currently facing the construction industry is the lack of qualified workers.
For construction to work properly, there must be enough people to carry out the work. A shortage of personnel can lead to exhaustion, which can cause a further decline in the number of qualified workers as more people leave the industry. Millennials are not flocking to careers in construction like previous generations did, which will continue to cause problems for companies in their attempt to meet growing demand. These problems slow down projects, but they also force labor and machinery to be idle, which impairs productivity and generates additional costs for the contractor.
Cost Overruns. Cost overruns occur when a project exceeds its pre-planned budget. This is a major problem in the construction industry, as a McKinsey study estimates that 98% of large construction projects have cost overruns of more than 30%. Companies can control specific areas, such as creating contingencies due to material supply problems or better managing their machines and workers to avoid idling.
Technology. If a company doesn't work to comply with changes in construction that require technological advances, it will have serious difficulty succeeding. Technologies such as Bridgit Bench allow construction companies to counter some of the industry's major problems, such as disorganized workforce management, insufficient scheduling and inadequate communication.
Whether it's tariffs, trade conflicts, inflation, or rising global demand, the cost of building materials is rising. This can make it difficult for companies to stay within their budgets.
In-House Training Programs. Construction companies have done a good job creating in-house training and internship programs, as well as collaborating with state and local governments to create programs designed to attract and train new talent for careers in construction.
Project Delays. A KPMG survey revealed that only 25% of construction projects met 10% of the specified deadlines. This can be caused by a lack of qualified labor or communication inefficiencies.
Communication inefficiencies are related to a high percentage of construction problems, and inefficiencies cause complications such as unrealistic expectations (because planners are not on the ground and don't know how long a task might take) and important tasks are overlooked (as teams remain uninformed about problems until it's too late).
Learning Curve. Many AEC companies will need to overcome a learning curve, including building design, material sourcing and construction methods. The construction industry is facing numerous challenges that can make it difficult for companies to succeed.
From the lack of qualified workers to cost overruns and communication inefficiencies, these issues can lead to project delays, cost overruns, and safety issues. By understanding these ten biggest problems that construction professionals are facing today, companies can take steps to address them and ensure their success.