Key Industry Trends for the Construction Industry in 2024

As the construction industry continues to evolve with the integration of new technologies, businesses are gearing up to meet the demands of this digitally-oriented era. With emerging technologies that have the potential to disrupt traditional business models, coupled with workforce and sustainability challenges, it's important to stay up-to-date on the top trends in the industry. 

In this article, we'll delve into the key trends that you should keep an eye on. Whether you’re a business owner, contractor, architect, or builder, insight into what’s next will give your company a competitive edge. Buckle up as we explore the changing landscape in 2024. 

Construction Industry Growth in 2024

According to The Business Research Company, the market is on an upward trend and is expected to continue expanding. The market is projected to grow from $7,265.96 billion in 2023 to $7,592.74 billion in 2024, with a compound annual growth rate of 4.5%.

This growth can be attributed to several factors. One such factor is a heightened emphasis on sustainability and environmental responsibility. Companies are adopting new technologies, including robotics and artificial intelligence, which are contributing to the growth as well. Additionally, the construction industry is continuing to move towards modular and off-site construction methods.

This is timely given that construction companies are expected to undergo several significant developments that impact their operations across various projects. We can also expect an amplified emphasis on promoting worker safety and well-being, along with a stronger partnership and integration among diverse stakeholders. 

Sustainability as long-term resilience measures

With the increasing adoption of energy-efficient building materials and sustainable construction practices, the construction industry is expected to accelerate changes and align with the International Energy Agency's Net Zero Emissions by 2050 scenario. This scenario requires all new buildings and 20% of existing structures to be zero-carbon-ready by 2030.

Developers and contractors will demonstrate their commitment to:

• Lowering emissions through renewable energy and electric equipment
• Conserving resources through optimized practices and recycled materials
• Pursuing green building certifications such as LEED and Energy Star to validate the long-term viability of environmental best practices. Many municipalities will incentivize or even require certification for new buildings.  
• Adopt cleaner technologies and develop expertise in environmentally conscious practices and efficient methods of operation. 

With such new demands for sustainability and resilience, the industry is well-positioned to benefit from the increased development of advanced and emerging materials such as self-healing or high-performance eco-friendly concrete, electrical steel, graphene, and carbon fiber composites.

For example, there has been a growing trend toward using green insulation materials like cellulose, sheep's wool, and recycled cotton. These materials are renewable, biodegradable, and have low embodied energy.

Firms are moving away from insulation materials such as foam and fiberglass, which can have adverse effects on the environment. Expect to see a greater emphasis on passive building design, which uses natural light, ventilation, and landscaping to reduce energy consumption. Rainwater harvesting, green roofs, solar panels, and geothermal systems will become more popular in 2024. 

Prefabrication: Advances, Challenges, and Opportunities

Prefabricated construction is the process of manufacturing components off-site in a factory before transporting and assembling them on-site to form a structure. This approach facilitates a more systematic and comprehensive construction process, which results in better outcomes for everyone involved. 

The current focus is to make significant enhancements at all construction levels to ensure a more streamlined and effective workflow. As the global economy mends, the utilization of prefabrication components enables faster project timelines, higher quality, and leaner budgets. 

Expect greater utilization of: 

Modular building sections for vertical construction

• Pre-cast concrete elements
• Prefabricated mechanical, electrical, and plumbing systems
• Prefabricated components and modular building techniques to cut down on material waste and emissions from transportation. Expect job sites to improve recycling efforts as well.

Twin Advantages of Prefab‍

As prefabrication capabilities continue to evolve, construction companies can reap the advantages of increased productivity and efficiency. It is particularly advantageous for building projects that require a high degree of redundancy. This applies to structures with multiple rooms that are similar or identical in design, such as student housing, hotels, hospitals, and institutional buildings.

Data Integration: A breeding ground for ‘unconnected’ data 

Construction projects generate vast amounts of data, which must be effectively managed. However, each project team and stakeholder follow their own distinct workflows and processes. This can create inconsistencies, conflicts, and misinformation when sharing information.

It's worth noting that engineering and construction projects are quite complex, and to make matters worse, almost 95% of the data collected in these projects goes unused. Furthermore, nearly one-third of the initial data produced during the design and construction phases is lost entirely when the project comes to an end.

So, what actions do we anticipate businesses taking in 2024 to improve the management of this data? Effective project delivery will increasingly rely on providing the right people with the right information at the right time. Firms in 2024 will invest further in: 

Digital platforms to compile, analyze, and share data

• Integrations between programs to break down data silos
• Project scheduling to enhance how resources and materials are distributed within a project
• IoT-enabled monitoring devices, such as sensors and wearables, collect data on various construction parameters, including temperature, humidity, and safety conditions. This data can then be analyzed to identify potential risks, prevent accidents, and optimize workflow.

Construction companies can leverage platforms like Lumber to develop a well-rounded data strategy that takes into account all data sources and repositories for payroll, time tracking, job costing, and project management. This allows for seamless data exchange across different systems, ultimately optimizing data flows and driving better outcomes.

Emerging Technologies Reshaping MEP, Structural, and Finish Trades

From cutting-edge AI-powered tools to eco-friendly materials, here are just a few of the most important ones to keep on your radar in 2024, shaking up the industry and changing the way firms work.

• Digitization streamlines MEP coordination. BIM and 3D modeling continue to revolutionize mechanical, electrical, and plumbing coordination. These digital tools help teams visualize cluttered spaces, detect clashes early on, and improve project efficiency. Augmented and virtual reality also assist with complex installations.
  
  
• Automation and robotics gain traction. From automated bricklaying machines to AI-powered spray painting robots, a wave of automation and robotics enters the industry. These technologies boost productivity and quality while reducing safety risks and manual labor.
  
  
• Sustainable materials have become mainstream. Sustainable materials like mass timber, composite lumber, and recycled plastics have become more popular as eco-conscious alternatives. These materials have a lower carbon footprint than steel and concrete, making them ideal for net-zero building projects. 

• Prefabrication and modular construction accelerate. A significant increase, allowing for better quality control, waste reduction, and scheduling reliability by assembling building components offsite. 

• Smart infrastructure technologies like sensor networks, building analytics platforms, and automated systems become prevalent. These features, such as self-regulating HVAC and intelligent water management, drive the smart infrastructure revolution. 

Skilled Labor Shortages and Training

Construction companies across the nation are grappling with a shortage of skilled workers, which is hampering their ability to meet the ever-growing demand. This scarcity is expected to persist as a major obstacle throughout 2024. In response to this issue, we can expect significant industry-wide changes. 

• More incentives and benefits for workers: To attract and retain talent, construction firms will provide better pay, benefits packages, and perks like on-site gyms and daycare. Signing bonuses for specialty trades like electricians and plumbers will continue to be common.
  
  
• Increased investments in training programs: Both trade schools and construction companies themselves will expand access to apprenticeship programs, on-the-job training, and vocational education. This will help develop the next generation of skilled tradespeople. 

• Greater diversity and inclusion efforts: The construction sector will work harder to recruit talent from previously overlooked groups like women and minorities. This will help expand the labor pool.
  
  
• Use of prefab and modular techniques: Prefabricated components built offsite can reduce the amount of onsite labor needed. Things like modular homes and precast concrete will enable firms to operate more efficiently.
  
  
• More technology and automation: Where possible, construction companies will implement tech solutions and automated equipment to maximize productivity with smaller crews. Think robots assisting with drywall or AI analyzing blueprints. 

Changing Safety Regulations and Requirements

Safety is a critical concern in the construction industry, and as such, safety standards and regulations are in a constant state of evolution to safeguard workers and the public. These changes will have a significant impact, and it's essential to be prepared for them.

• Stricter fall protection rules: OSHA is expected to update fall protection requirements, which will mandate advanced safety railings, nets, and personal fall arrest systems at new height thresholds. This change will impact everything from scaffolding to roof work. Therefore, it is essential to stay on top of new, compliant equipment and training. 

• Expanded confined space protocols: The new confined space rules will further protect construction crews that enter restricted areas like tunnels, tanks, and trenches. To avoid violations, it is necessary to update your procedures, equipment, and training. Investing in gas monitoring and ventilation equipment is also advisable. 

• More rigorous equipment inspection policies: Inspecting cranes, lifts, rigging, and other heavy machinery will become even more strict and regulated in 2024. Proper documentation and certified inspectors will be essential to keeping jobs running smoothly. 

• Enhanced job site security mandates: New rules aimed at better securing equipment, materials, and job sites from theft and vandalism are expected. Perimeter fencing, surveillance cameras, and inventory tracking will likely be part of future requirements. 

What’s Next: Green Building Practices

The construction industry's future appears to be heavily reliant on emerging best practices. These practices include using materials that are sustainable and environmentally friendly, reducing energy consumption, employing renewable energy sources, and implementing water conservation measures. 

It also involves creating healthy and safe indoor environments for the people who live there, which can be achieved through the use of natural light, proper ventilation, and non-toxic materials. This trend is expected to improve the sector's resilience, efficiency, and sustainability while also permanently altering how we construct, build, and manage infrastructure.

The construction industry can proactively adopt sustainable and eco-friendly building practices by embracing the changing landscape and best practices, taking a lifecycle approach, and taking environmental impact into account at all stages.