Which Countries Do You Think Made the List?
When you look at the dollars passing through the global construction industry, it can feel a little shocking. In fact, growth in global construction to outpace world GDP over next 10 years. That means, the building industry is going to get a lot bigger in a short timeframe. Another decade of construction exceeding the world GDP means that there’s a lot of opportunities out there.
Let’s look at how much the market is growing. The Global Construction Report 2030, sponsored by global advisory firm PwC, reveals that construction continues to expand on the world stage. Individual countries wax and wane as their construction needs change. Earlier reports estimated that the annual output from the industry would reach $12 trillion by 2020, with China, the United States and India taking up about half of the increase. Now, experts believe that construction is expanding even more rapidly, jumping 85% to $15.5 trillion in 2030.
Although the main actors–China, US and India–still take the lion’s share of the growth, you might be surprised to see how the dynamic is expected to change. For example, China shows signs of slowing down a bit, while India is really coming into its own.
Ready to find out who are the top players in the future of global construction growth? Click through our SlideShare “Top 10 Fastest Growing International Construction Markets,” below to see which countries are leading the global construction boom.
3 Ways to Make Global Construction’s Expansion a Success
Rapid urbanization worldwide calls for new approaches to solving the old problems of inefficiency and the labor shortage that have been burdening the industry for decades. The primary obstacle to advancement in the face of such growth is scalability to meet our world’s infrastructure demands. The problem, of course, is that you can’t just dramatically increase output without making some changes to the way business is done.
The construction industry has the urgent responsibility to modernize in order to keep up with demand. With outside pressures like labor affecting market stability, businesses need to rethink their workflow, ensure they can recruit and keep the people they need and promote cohesion across projects. Companies that take advantage of these tips are the ones that will come out on top in the global construction landscape.
1. Get Workflow Into the 21st Century
Innovation offers a way out of old methods that cause projects to come in late and over budget. One of the best ways that businesses can battle the shortfall is to automate whatever they can and get the workflow in a digital format. Construction teams want to be able to:
- interact with each other seamlessly
- minimize the amount of time they spend waiting
- reduce repetitious administrative tasks
Mobile construction apps are the answer. With these tools readily available, every employee can know the exact status of each task, in a format they already understand. A recent survey says that about 95% of construction companies think they could get every job done on time, with technology as the most obvious solution. Less time spent coordinating means more time for projects, and more dollars to recruit the most experienced workers.
2. Hire and Retain Top-Tier Talent
Speaking of skilled workers, all over the world, countries are trying to cope with the labor shortage in construction. Not having a large pool of workers with the skills needed for the job causes delays at every stage of the process. Companies with a long backlog of overdue projects fall increasingly behind every time they struggle to secure that qualified employee or contractor.
The shortage is global and has been slowly decreasing over the past several years, but it’s not the same everywhere. Some countries are better at getting and keeping workers. When adjusted for population, China has about twice as many people working in construction as the US. Nonetheless, the Asian nation has been relying on increasingly innovative methods of construction from 3D printing to prefabrication to help alleviate the pressures felt from the shortage.
So, what can companies and governments do to make sure they get the right talent? Learn what the untapped corners of the employment market want, and give it to them. For example, part of the shortage relates to the retirement of long-time experts, with no younger person entering the field to replace them. To attract workers who are currently exploring their career options, companies should offer a competitive salary. Training in skills relevant to the global construction industry, like construction technology, helps incoming employees feel like they are building a career they can follow for decades.
3. Make Contracts Friendly to All Parties
Most construction projects rely on a series of actions completed by various members of a team. Each team member, from the property owner to the lowest-ranked contractor, needs to know that their position is respected. Nevertheless, too often, stakeholders try to work off a contract that was ill-designed, poorly executed and incentivizes only individuals rather than the whole project team.
Instead, the party drawing up the details of the contract should aim to ensure that everyone understands their obligations and possible risks, with clear incentives to work with the rest of the team toward project success. A result is a contract in which all parties feel secure that the risks of the project are low enough, and the benefits are well-defined. Companies that move to collaborative and team-friendly contracts will reap more benefits towards one primary goal–an efficient completion of a high-quality project.
Evolution Is the Key to Continued Global Construction Growth
The predicted growth in the global construction industry could be both a boon and a bane to those in the field. These 10 countries are leading the way in demand, but the way that the need is met depends on the evolution of construction companies. It’s not enough to take on more projects and hope that everything works out. A solid plan of action to cut down on wasted hours, turn the labor shortage to your favor and make contracts friendly to everyone are among the best ways to ride this wave of growth into a new age.
Are there other countries you think will be significant players in the future of global construction growth? Share your thoughts in the comments section below!