Very few people could have guessed that the past few years would be so interesting. But, despite the tumult, supply shortages, unrest, and other challenges, construction is still one of the fastest-growing industries in North America. All across the U.S. and Canada, construction crews continued to build while other industries were at a standstill—albeit, not all at the same pace.

But what does the future hold for the construction industry? And what does it mean for the future of construction software? Let’s find out!

Where the Industry is Heading

As a whole, the construction industry is heading toward continued growth over the next few years. Government spending on infrastructure projects is helpful, but the majority of the growth will come from the effort of the residential industry. In fact, residential construction deserves most of the credit for the industry’s bounce back after the 2020 recession.

But how much will it grow moving forward?

With so many entities performing market research on the construction industry, the estimates regarding growth vary. However, most researchers believe that the industry will grow at a compound annual growth rate (CAGR) between 4.8 and 8.4 percent over the next few years. While that might seem to be a drop in growth rate from 2021’s numbers (roughly 12 percent), it’s still within a healthy range for most industries.

Trends to Watch

One of the best ways to understand the direction of the construction industry is to look at current trends. While they may be temporary, they can steer the direction of the ship.

Residential is paving the way. While the commercial and municipal construction sectors slowed (crawled, really), residential construction experienced a boon. Despite the rising costs of materials and lumber, new home construction and renovation made up the majority of the industry’s growth.

Some construction firms saw the writing on the wall and pivoted from commercial and residential outfits to residential-only. Many downsized their workforces but were able to keep the doors open by building new homes or remodeling existing homes for folks fleeing big cities.

Commercial and industrial projects are likely to continue crawling moving forward for the next year or so, leaving the emphasis on the residential sector. However, both of these industries are expected to bounce back shortly after.

Labor is still an issue. Finding skilled workers has always been a challenge for the construction industry, and it’s an issue that isn’t likely to go away any time soon. But, it’s not just the ironworkers, carpenters, and electricians that are hard to find. It’s also a lot of the clerical and office staff. In fact, the number encompassing all positions lost during the pandemic is just shy of one million jobs.

Many folks chose to stay home from work for a few years, while others transitioned into other industries that were more work-from-home friendly. Whatever the case may be, there just aren’t enough experienced, qualified workers to keep up with the industry’s demand.

Companies are doubling down on technology. Despite the industry’s resistance to technology and the changes it may bring forth, companies are investing heavily in connected construction. The hope is that by investing in technology, these companies will be in a better position to answer the call for smart cities, climate change programs, and Urban Air Mobility initiatives.

Along with positioning themselves to take advantage of big-spending bills and government programs, the companies within the industry can now realize improved efficiency, accuracy, reduced costs, and larger margins.

Supply chains are far from fixed. Supply chain issues plagued all industries in recent years, but they’ve really held the construction industry back. Between not being able to get certain materials or basic materials doubling (or tripling) in price, materials availability and affordability have been an issue.

This issue is likely to play out over the next few years before it comes back to the center. Some materials are still difficult to find, and then getting them to the job site can be even more of a challenge. Until other countries open completely and everyone heads back to work, this is an issue that won’t go away any time soon.

How The Construction Software Industry Will Respond

While there may be good things on the horizon for the construction industry as a whole, the construction software industry must adjust accordingly. In general, this means developing new technologies or adapting older tech to modern trends.

1. Adapting to Residential Contractors

Most construction software programs are designed for large contractors tackling commercial and industrial projects. However, with the current trend showing residential work to be the shining star of the construction industry, software companies will have to adapt.

Adapting to residential construction won’t be difficult for most software developers. However, a greater focus on making estimates easier to understand, making forms easier to customize, and simplified invoices will help those working in the residential industry.

2. Better User Experience

With such a shortage of skilled employees to choose from, growing construction companies will often rely on less-experienced personnel to see the job through. In fact, some employees may go right from the slab to the office, and they need to adapt quickly.

In this case, making construction software easier to use will help those lacking experience adapt to the new system. Also, these systems will help to reduce the number of mistakes or errors caused by inexperience—something the industry may come to rely on in the coming years.

3. Cloud-Based Access

With so many folks working from home these days, cloud-based storage systems and real-time reports will become critical. While the actual building happens on-site, plenty of the clerical and administrative roles can transition to a remote commute. And, companies will have to start offering these WFH positions if they want to attract the right people.

For these roles to work, however, they need reliable access to the company’s construction software program as well as the drawings and files that it may contain. Software companies will have to partner with strong cloud service providers to pull that off.

3. Improved Flexibility

As supply chains continue to work themselves out, modern construction software needs to be nimble and flexible. It should allow for easy changes it can also track through the system, adjusting the appropriate values automatically as it goes. There’s no way to predict how often this could happen during the lifetime of a job, and streamlined automation will help.

Construction software should allow for the easy production of change orders should a particular material become unavailable. These change orders should operate on customizable workflows so everyone who needs to see it and approve it can do so. With these features requiring minimal input from the contractor, there will be fewer errors and less downtime, helping to keep projects on track.

Growth on the Horizon

Between the construction industry and the software that supports it, the future looks like growth. While certain sectors might struggle to keep up, the overall industry is poised to grow over the next few years, and savvy construction software creators will adapt their programs to go along for the ride, including yours truly, Premier Construction Software! Amidst the market shifts, one thing Premier and the team behind the brand can do is adapt. We will ensure your business can benefit from a system like ours.

See how we can help you structure your business for success, schedule a demo today.

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Author Biography:

Tom Scalisi has over 15 years of experience working in the trades. Since moving to full-time freelance writing, he has developed a passion for helping construction companies grow. He enjoys teaching contractors how technology can streamline their businesses and educating them about their rights during payment disputes.

As pandemic restrictions are tightened again, and some areas go back into lockdown, workers are again being asked to work from home when possible. While construction companies are used to working from many sites, the office staff is generally located in a central office. Changing venues for office workers has its advantages and disadvantages. Here are some of the benefits and challenges for construction company employers of having workers work from home.

Benefits to employers

1. Higher productivity

When working from home, employees are often more productive than they are at the office. There are fewer distractions from coworkers stopping by to chat or ask questions. It’s easier to shut out time-suckers like email notifications and unnecessary meetings. A FlexJobs 2020 survey found that workers who thought they were more productive at home, were. Respondents cited fewer interruptions and quiet working environments as part of the reason for their increased productivity.

2. Recruit from a larger pool of candidates

When location isn’t a factor when hiring, companies can expand the pool of possible candidates for open positions. This can lead to hiring more highly skilled workers for key roles. When companies hire the best of the best, their products and services improve in quality.

3. Reduce turnover

The flexibility inherent in a remote job allows workers to stay with them longer. For example, if an employee needs to relocate because of a spouse’s job change, instead of quitting they can easily continue working for the same company from another location. Companies can keep key talent when there are fewer constraints on where they perform the work.

4. Reduce overhead costs

For some companies, overhead costs like office rent and supplies can be significantly reduced or even eliminated by employing a remote workforce. With fewer overhead expenses, profits increase.

Employees also save money. Since they don’t have to commute anymore, they save on gas, car repairs, parking, and lunches. This savings translates into more of their hard-earned money staying in their pockets.

5. Fewer sick days

Spending less time around other people, coworkers, and the public, results in less sick time. Workers reduce their chances of catching viruses, colds, and the flu. With less downtime, workers are more productive and are able to get more accomplished over the long haul.

Challenges to employers

1. Collaboration and communication

As contractors know, when teams are spread out over long distances, it can be difficult to maintain communication and collaborate with team members. Impromptu meetings and discussions are more difficult to have when workers aren’t in the same physical location.

Luckily there are several tech applications that can assist teams in maintaining their connections. From online messaging apps, like Slack, to videoconferencing programs, like Zoom, it’s easier than ever for teams to keep in touch when working remotely.

When it comes to accessing collective data, online SaaS programs allow everyone to get the data they need from any device with an internet connection. This ensures that everyone has the info they need when they need it. Using SaaS software also allows office teams to stay productive from wherever they’re working, as well as ensuring everyone is working off the same real-time data.

2. Distractions

While there may be fewer distractions at home than in the office, they are still a struggle to deal with. Children, pets, and household chores can quickly steal employees’ concentration. Workers must do their best to set boundaries and structure their work environment and schedule to reduce distractions as much as possible.

3. Technology struggles

Technology can be difficult to deal with, whether it’s at home or in the office. Programs crash, computers die, and internet connections are lost. While these problems can’t all be eliminated, there are some things that can be done to help prevent them.

Ensure that employees have the latest in hardware and software installed on their work-provided devices.
Develop a schedule for regularly replacing hardware every 2 to 3 years.
Employ IT workers or hire a company to provide remote service to all employees.

4. Time Management

Without the structure of the office environment to keep them on task, some workers may struggle with managing their schedules when working from home. They may lose track of their work time and blur the lines between home and work life. This can lead to added stress and burnout.

Allow workers to set their own schedules when possible, so they can effectively manage their work and home life. Encourage them to stick to their schedule as much as possible, with only occasional changes under special circumstances.

5. Dress code

When working from home it can be tempting to dress more casually than when working in the office. While an occasional day spent working in your pajamas is acceptable, workers need to be dressed properly the majority of the time. Clothing can be both professional and comfortable, keeping workers in the correct mindset when they’re on the job.

As construction workers and companies continue to navigate the ever-changing pandemic restrictions, it’s best to remain flexible, as this helps reduce stress. Teams can function successfully when working remotely with the help of technology and a little patience.

Check out Premier Construction Software to see if it fits your company’s strategies and goals. Our construction management and accounting software provide teams with the tools they need to take advantage of these technologies. Schedule a demo by contacting us today.

We’re more than just construction financial software. We’re built to help your business.