According to the Associated Press, construction spending decreased by 1.1% in June, the biggest decline in over a year. Government spending on construction projects also fell, dropping 3.5%. Broken down even further, government spending for school construction decreased by almost 11%, multifamily construction went down my 2.8% and industrial power spending decreased by 9.5%.
Despite the decline, industry analysts believe construction spending will contribute to the economy’s growth. The construction industry employs more than 100 million people around the world. Advancements in construction technologies are changing the infrastructure, designs, operations and maintenance. Among the new construction technologies are tools that can help reduce manual labor, like an Alabama university robot that can lay over 3,000 bricks in one day.
Experts predict that a full-scale digitization in the next 10 years could save $ 1 – 1.7 trillion USD annually in construction spending. However, the industry tends to adopt new technologies slowly and still relies heavily on manual labor and mechanical equipment, which can all result in ineffective productivity. So how can management adapt to the changing landscape? Here are two key ways to build for the future:
Adopt artificial intelligence software into the workflow. This can help to effectively plan structures and designs and keep information organized. Robotics is another technology to explore. This industry is utilizing more sustainable technologies and materials to meet environment regulations.
Hire high-quality workers. The future workforce needs a different set of skills than what today’s construction workers have. Change won’t be immediate but to ensure a smooth transition, it’s important to provide adequate training.
Construction spending has decreased in the United States, but it could be due to advancements in technology. Companies must adapt to changes and new requirements to ensure a prosperous future.
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