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Emerging Trends in Real Estate

Emerging Trends in Real Estate

Key Construction Industry Trends
Ahead of the COVID Pandemic, the Construction Industry, which has been one of the hardest hit industries, has been steadily making growth, ahead of the forecasted projections. The industry has had phenomenal growth, most notably in America, Japan,, China, Russia, France and Mexico, being seen as the industry leaders. This is not to say the industry has not faced its fair share of problems.
Challenges that the Construction Industry Has Faced
The most notable challenge, which has affected multiple other industries, is supply chain issues, which have been caused due to the pandemic as well as the Ukraine invasion Supply chain issues have caused massive delays to new and existing projects, ultimately causing delays of anywhere of 3-6 months typically and even longer. In line with this, the industry has seen greatly increased costs, most notable with steel increasing over 100%, and concrete, asphalt, lumber and coatings all increasing by at least 20%. This has caused project costs to increase greatly.

The industry has also faced a challenge in sourcing both sufficient quantity and suitably skilled labourers. As the industry continues to evolve, so do the required skill sets. While the industry has continued to see growth, this has remained as one of the key challenges over the last decade. This also ties in with the challenge of diversifying the labour compliment to include women in the industry.
The industry has also faced pressure to reduce its carbon footprint. The construction industry accounts for 30-40% of carbon emissions, especially when factor in all the various sub sectors, suppliers and contractors. Due to this, there is a global drive to reduce the carbon footprint.
Trends and opportunities in the Industry
Some of the most positive trends the industry has seen include the following
Use of AI and designated software programs
Technological advancements and adoption of AI in the workplace. While there is still much room for improvement, the industry has seen a significant uptake in the use of AI and programs to make the workplace both safer and more efficient. This includes programs and accounting software designed to accommodate the industry’s specific needs.

Sustainable Building Materials and Renewables Energies
It is estimated that the amount of new building projects each week, equals the size of Paris. With all this construction work, there is a significant impact which results in carbon emissions and other harmful greenhouse gasses. The industry has seen great development over the last few years in using a variety of new materials which are biodegradable, use less materials in general through new building designs, recycled materials and emphasis on building structures with renewable resources in mind. Some of the new building material developments include, hempcrete, recycled plastic, bamboo, laminated timber, recycled aggregate concrete and fly ash, which is a by-product of coal. These all envision reducing waste and for future projects. Some of the new building designs include using geometry to reduce the quantity of building material by up to 70%, which significantly reduce operational costs. These new designs are just as strong if not stronger than existing practises. The various forms of renewable energy include, wind and water electricity generation, solar panels and renewable gases, all of which have a significantly reduced carbon footprint over the conventional electricity generation mechanisms.  

Mergers and Acquisitions
As stakeholders in the industry have sought more to focus on sustainable growth and security amidst the pandemic, the industry has witnessed a number of mergers and acquisitions. The industry has noted this as the most promising venture for opportunity, leading to;

  • Connected Construction (access to multiple disciplines under one roof);

  • Accelerate Corporate Growth;

  • Reduce Effects of the Construction Cycle;

  • Enter in to New Markets; and

  • Spread risk

It is imperative to have a properly structured deal, contracts and valuations in place for these, to ensure that your company gets the most benefit out of these deals. Companies who have invested in the right deals have seem superb success.

Diversity in the Workplace
As of 2022, women in the workplace accounts for around 11% of the total demographics, with significantly less representation on the front-line workforce. There are estimated to be at least 200 million jobs available in 2022 following all the new construction projects globally, and the industry has placed an emphasis for women to become of the industry. The industry has seen an increase in women within the industry, up from around 8.9% representation in 2021, including those of senior positions as well as retention of long-standing employment in these positions. Overall, the industry has experienced a positive uptake of the need for inclusion in the workplace, whether it is gender or race.
The future of the construction industry is therefore very promising with a number of emerging opportunities and new ways of doing business. With a myriad of new construction techniques and materials underway and a future planned with sustainability in mind, we can only remain positive for what lies ahead. Should you wish to find out more, or require any assistance in structuring a merger or acquisition deal, contact your nearest Moore offices and we will gladly meet your requirements.