The global construction market – a colossal, beast of an industry that sculpts skylines, transforms landscapes and provides the
stage to our lives – is not without its share of challenges.
When you take a moment to examine the world of construction in the world we construct, several factors clearly stand out as
significant, shared hurdles with which the industry grapples with on a global scale; today for tomorrow. Here are a few such
examples.
Population Growth and Urbanisation – Accelerating Spatial Demands
The global population is forecasted to increase to c. 9 billion by 2050 and the UK population projected to reach more than c.
77m in the same timeframe (+14% versus today).
Today, cities account for more than 50% of global population and again, by 2050, this is predicted to rise to nearly 70%. The
impact of technology and new methods of construction are vital to accommodate such change.
Clearly, this will have a profound impact on how we design living spaces; with sizes and structure types in need of continual
review with tomorrow’s needs in mind.
Financial Risk
The construction market is inherently capital-intensive, making it susceptible to financial risks.
Fluctuations in material prices, currency exchange rates and economic/market downturns can impact project viability and
profitability.
Supply Chain Disruption
The construction sector heavily relies on a complex web of suppliers for raw materials and components. Disruptions in the
supply chain, whether due to geopolitical tensions, natural disasters, or global pandemics, can result in delays and increased
costs, affecting project timelines and budgets.
Sustainability and Environmental Factors/Concerns
The construction industry is the largest consumer of resources and raw materials.
In an era of increasing environmental awareness, the construction industry faces the challenge of aligning with sustainable
practices.
Balancing the need for urban development with environmental conservation remains a tightrope walk, as stakeholders seek
eco-friendly materials, energy-efficient designs and waste reduction strategies.
Skilled Labour Shortage
A critical challenge facing the construction market is the scarcity of skilled labour. As the industry experiences growth, there is a
widening gap between the demand for skilled workers and the available workforce. This shortage can lead to project delays,
compromised quality and increased costs.
We are also an ageing society. Life expectancy is projected to be 94.3 years for male and 97.3 for females by 2037. The
number of UK residents aged 90+ has tripled in past 30 years.
Technological Development and Integration
While technology has brought about remarkable advancements, integrating tech into the traditional construction sector creates
its own set of challenges (in a somewhat traditionally reluctant sector).
Adapting to Building Information Modeling (BIM), robotics and automation requires significant investment and a shift in
mindset within the industry. However. increased use of premanufactured/offsite modules and improved monitoring for
predictive and corrective building performance and maintenance are already becoming more commonplace.
Regulatory Compliance and Permitting
Navigating the labyrinth of regulations and obtaining necessary permits can be a cumbersome process in the construction
sector. Stringent building codes, zoning laws and environmental regulations vary globally, making compliance a complex task
which often leads to project delays and added unplanned cost.
Infrastructure Deficits
In some regions, inadequate infrastructure, such as poor transportation networks and limited access to utilities, poses a
challenge to construction projects (and, therefore, for all players in the value chain). Overcoming and managing these deficits
requires collaborative efforts between governments, private sectors and communities.
The global construction market is a unique and dynamic arena, where innovation and challenge coexist. Addressing such issues
requires a holistic approach, with stakeholders collaborating to find sustainable solutions.
As the industry navigates the complexities of the modern world, embracing technology, prioritising sustainability and fostering
a skilled workforce are essential elements towards building a resilient future.
KMN Consult specialise in finding the right people for the right roles; shaping your workforce for the construction industry of
the future. Your trusted search partner.
If you’d like to learn more about my approach, or share your views on this topic, please reach out on 07835 123105 or
info@kmnconsult.co.uk.