Share this on FacebookJanuary 9th, 2020 | Published by NEW Construction Alliance
Accounting firm Deloitte has released a new report detailing the greatest challenges to construction profitability in 2020.The ongoing industry “talent shortages” are cited several times as one of the key obstacles.
Other challenges include project complexity, competition from Asian companies and supply chain limitations.
Despite these barriers, Deloitte points to several trends that could potentially increase margins and profit:
Modularization and Prefabrication
Study author Michelle Meisels, Deloitte’s Engineering & Construction practice leader, told Construction Dive that “Prefabricated construction allows you to build in a controlled environment. With more control and better planning comes the ability to control costs and mitigate any risks of surprises such as inclement weather."
U.S. Infrastructure Upgrades
The federal government is expected to spend $2 trillion over the next decade as part of one of the biggest infrastructure investments in history. This includes upgrades to roads, bridges, water systems, the power grid and broadband, among others, and is expected to spur a lot of job creation in the engineering and construction industry.
Rise of Smart Project Management (see above article)
As discussed in the above post, the advent of smart technology based solutions that will help greatly reduce industry waste with more forward-looking insights on labor scheduling and material ordering.