2020 was a challenging year for so many companies, let alone companies in the construction company. Thousands, if not hundreds, of construction businesses, shut down their operations after the coronavirus pandemic hit. And the leading cause of business closure was the lack of funding to keep the enterprises alive. More so, getting the chances of getting loans were slim, and only a few enterprises got to secure them.
Now that all that is behind us, the businesses that survived are projecting the highest profits due to the pandemic. Contractors predict steady streams for 2021-2022 due to a few factors we shall discuss in this piece.
But first, let us take a brief look at some of the impact covid-19 had on the industry.
The construction company in so many companies depends on so many items imported from one location or country. These items like steel rails used for reinforcement and even building stones saw a delay or complete cessation. When the world went to a halt, many suppliers of these materials closed their doors, so there was no more supply. The governments also closed airports and some ports blocking off any shipments scheduled to come in. with that, most contractors and subcontractors had nothing to use to work.
Most construction sites are usually filled with large groups of people working. And this was in complete violation of the covid-19 no crowding rule. Also, the fact that most people had no idea of their covid-19 status, there was a wave of fear contact it while working. This then saw to the closing down of most building sites.
Covid-19 came with no warning; thus, most ongoing or projects that were to start were either stopped or not started. All the funding put into place had to be redirected elsewhere or set aside as savings due to the uncertainty.
Perhaps the most negative impact that the industry saw was people losing their livelihood in the industry. Companies laid off so many o their staff members, particularly the casual workers who depended on a casual worker's salary that only came after a job was done. Small subcontractors also felt the blow and shut down most of their services.
The pandemic was clearly not going anywhere anytime soon, and so many businesses, including ours, had to change so many things. Some of these changes were general across the board, while some were specific to the industry. Here are some of the changes made in the construction sector:
In an effort to reduce the infection rates of the virus and still manage to give contractors a source of livelihood, workplace safety guidelines had to be implemented. So the whole team, from the owner of the site to the contractors, the subcontractors had to adhere to these rules. They had to include handwashing stations equipped with soap and water and hand sanitizing stations. The workers also had to wear a mask in addition to their safety gear, and lastly, they must refrain from overcrowding by maintaining social distancing. Organizations such as the United States Department of Labor also updated OSHA Requirements and Guidelines.
The construction of specific infrastructure projects is typically time-sensitive; things such as roads and commercial buildings. That said, they must finish the work as scheduled, and since the pandemic already caused a delay, most had to double the working shifts to both day and night. This also helped the contractors on the ground to adhere to the overcrowding rule, which minimized the spread of the virus. And with such significant steps put in place, funding had also to be doubled. So much so, companies like Equify Financial stepped in to help. Taking loans with tailor-made terms and flexible payment arrangements is one of the trends that will influence construction this year.
Things had slowed down, but with tech, they are steadily picking up. And construction sectors expected to shrink in 2021 are expanding after they have embraced technological solutions. Virtual meetings for consultations and site visits through digital media have made the construction industry more efficient and still adhering to the virus's prevention guidelines. Now you do not need a whole group of investors to be present at a site. Just one representative wearing a GoPro camera and can guide other participants to a first-hand experience to check on the progress of the project. And to make this even better, it can be done in real-time for authenticity.
Previously, most construction companies had so many staff members who stuck around and still got paid even after their job was long done. But with the pandemic hitting, most companies had to eliminate this dead weight and were left with people who benefited the industry. Companies that did this are now benefiting from such drastic changes and have become more experienced.
When it comes the time that they need a particular service that the laid-off professionals did, they can now employ subcontractors on a task-based contract. This means that the work completed was of high quality, and they saved quite a lot.
Tasks such as brick layering, window, and door fittings can now be accomplished using robots that have been programmed to do that. When we touched on construction sites being a 24hrs affair, robots are the leading players in this. On that same note, robots are also used in demolitions of sites to be developed. This option is usually safer and cheaper.
VR and AR have also become a huge trend to watch out for this year. These technologies have been used to give the constructors a better view of the projected construction site. This also helps them set elements on the project at the appropriate location that are the most effective and aesthetically appealing even before the project is finished.
This is definitely one of the trends that will influence construction this year because it changes the game completely. With concrete 3D printing, it is possible to make a whole house in less than 24 hours. Despite it being still a very young technological idea, it will still revolutionize the industry.
Now construction companies are looking into eco-friendly building solutions that are saving the planet in the long run. Energy-efficient materials navigate low-carbon emissions, further saving the planet. Also, now contractors are building self-sustaining buildings adding solar panels, plants, and recycling water systems.
The 2021-2022 construction economic forecast is a positive one because companies have seen a need to evolve and become more efficient. That said, here are the main areas that these construction companies have significantly improved.
There is a clear improvement in how construction carries out its tasks. The incorporation of technological solutions has saved so much time and funds that would have otherwise been used. This has resulted in an overall increase in business efficiency in the sector.
Adversity has always been the drive to civilizations to create solutions through inventions. This pandemic has been one of those times that has pushed so many companies and innovators in the sector to develop ideas to make the industry more efficient. That said, we expect to see more and more from now henceforth.
Due to the lack of certain materials and tools, some construction companies have had to look for alternative items for their projects. Regardless, quality is not compromised as these items must be of higher quality than the original item.
Many companies are also saving a lot of funds in the sector by embracing the advancements mentioned above. The workforce is reduced, and competence is increased; time is saved, which means more saving. Sure, some advancements are multi-millionaire investments, but the long-run savings is unmatched. So if your company needs funding to acquire any of the above tech trends mentioned above, contact us at Equify Financial, and we will help with the funding.
The pandemic did hurt most industries, but with adversity comes revolution. And if you fail to evolve, you lose. From what we have covered above, the construction company is not bowing down but raising beyond adversity by embracing change. Therefore, these trends are the main drive to the notion that contractors predict steady revenue streams for 2021-2022. And beyond that, anything that comes after will be to add more value.
That said if your company is struggling to step up and join this technological revolution, contact us today, and we shall help any way we can. At Equify Financial, we are here to help.