Construction Industry Trends In 2024
The construction industry is currently facing a necessary evolution. 2023 saw continued trends towards a changing workforce, economic uncertainty, ongoing supply chain issues and sharply rising costs, forcing a substantial shift in the industry.
As investors, stakeholders and new legislation put more pressure on construction companies to drive sustainability, businesses will be hard pressed to keep pace with rapid changes coming in 2024 and beyond.
We break down some of the key industry news and emerging trends that are due to take off in the coming year. From new opportunities to navigating skill shortages, these are just a handful of the most topical industry highlights in winter 2024.
1. Skill Shortages Threaten The Construction Industry
A national skills shortage continues to put pressure on the industry, leading to a call-to-action to attract more young people to apprenticeships
A trade skills report issued in 2023 revealed that at least 937,000 new workers would be required within the UK construction sector in order to meet growing demand by 2032.
Speaking on this growing concern, Adrian Attwood, Executive Director, DBR (London) Ltd, commented:
“Investing in skills needs to become a priority for the UK construction sector, particularly in specialist professions. Niche roles from conservation stonemasons and master joiners to leadworkers, gilders, and even cleaners are at significant risk as talent pools continue to shrink.
“With the economy starting to stabilise and an upcoming election providing an opportunity to press the reset button on the education system, I hope that policymakers and the industry can come together to develop a deliverable strategy to overcome the acute human resource shortages we’re currently experiencing.”
Builders, plumbers and electricians are in high demand, with over 65,000 open vacancies on popular UK job sites.
It’s clear that an ageing workforce, the cost-of-living crisis and the lingering effects of Brexit are having an impact of the uptake in new workers to the industry. However, with hopes high that UK economy will begin to recover in 2024, it will be all hands-on-deck to get more young people onboarded into the construction sector as quickly as possible.
For more information on the skills shortage, read The Access Group’s overview.
2. New Opportunities On The Horizon For Construction
Recent reports forecast a welcome recovery for the construction industry in light of a 0.6% reduction in construction output in 2023.
The industry has faced growing concerns about the demand for work in 2023, leading many to question the viability of their success in the industry with terms like ‘acute recession’ being brought into the conversation.
This came following the publication of a UK Office for National Statistics report which highlighted a 0.6% drop in construction output in 2023. This largely pertained to an ongoing drop in private housing development, alongside private repair and maintenance work.
However, it’s not all bad news. Construction insights company Glenigan recently predicted that data points towards a 12% recovery rate increase for the UK construction industry.
Their UK Construction Industry Forecast 2023-2025 provides a forecast on the state of the industry over the next three years (2023-2025). In the wake of significant challenges within construction, such as economic slowdown, structural changes and new legislation changing the way the industry must operate, construction has been in a state of uncertainty for some time.
This has led to some extremely difficult conditions economically, which resulted in an 18% decline for the construction sector in 2023.
3. Focus on Deconstruction & Reuse
A shift towards deconstruction over demolition in 2024 may become key in reducing the alarming rates of waste within the UK construction industry
The built environment currently accounts for around 60% of UK’s material consumption and nearly half of all waste.
At the same time, new principles around promoting a circular economy are flooding into the construction industry, with the hopes of helping both the planet and businesses’ bottom line.
In 2024, construction technology trends seem poised to shift towards ‘deconstruction’ projects rather than the more traditional demolition methods.
The process of deconstruction allows for buildings to be incrementally taken apart, salvaging products and materials which can then be reapplied in future construction works. This becomes even more important as the industry’s trend towards using composite bonded materials to increase thermal performance often results in recycling rates being impacted as the materials can’t be separated.
By following the methodology set out by BRE Group, it enables a building’s resources to be reused, or recycled in the most efficient and productive way.
Going into 2024, there is an ever-growing awareness of the environmental impact the construction industry has, leading to stakeholders and investors requiring more commitment from businesses to promote more eco-friendly practices.
Read more about the 7 Principles of Sustainability in Construction
4. A Resolution To The Grenfell Tower Enquiry and Consolidation of Building Safety Practices
2024 is expected to be the year the final report is published for the Grenfell Tower Enquiry
A devastating event for the families and individuals affected, the inquiries that followed the Grenfell Tower Fire in 2017 have had far-reaching implications for the construction industry.
Since then, the UK now works under a new and largely completed building safety regime, which puts more responsibility on responsible persons to ensure the safety of those in their care. It also puts more emphasis on considered building practices and brought with it a sweeping array of legislation changes.
Over the next few months, we await as The Building Regulator goes into its planned Consolidation Stage in April 2024, which is sure to bring with it more regulatory changes.
Some of these changes include:
- Building Control to become a regulated profession
- Applications will begin to be assessed for building assessment certificates for higher-risk residential buildings
- A national register of higher-risk buildings will be created, providing a searchable portal of higher-risk buildings in England for the first time
- A residents’ complaints system will open
- An expected 2,000+ changes to NHBC Technical Standards
2024 is sure to be a huge moment for the construction industry and over the next few months its imperative that those within it work to ensure the continued competence of everyone involved in the building process.
5. A Focus On BIM and Technology For Sustainability
Technology such as BIM is set to become even more widespread in 2024, helping construction companies meet more stringent sustainability standards
Building Information Modelling (BIM) uses three-dimensional (3D) models to represent a building’s design, construction, and operation. BIM models are created using software that allows architects and engineers to collaborate on a project and share information.
The UK government has been a big supporter of BIM software, leading them to set several targets for its adoption within its own public projects. For example, by 2025 the government has stated that all public sector projects over £5 million must aim to use BIM.
In 2024, the impending arrival of BIM 2.0 is also set to revolutionise the industry. This new advancement is set to go beyond traditional 3D modelling, incorporating advanced data analytics and real-time collaboration tools. This shift promises enhanced project coordination, reduced errors, and improved overall project efficiency.
As construction companies face the multidimensional challenge of making sustainability a key aspect of their operations, this new technology may help them adapt to evolving market trends and environmental regulations.
Utilising technologies and techniques such as building information modeling (BIM) allows companies to model both a building’s performance and carbon footprint. BIM also allows users to estimate both cost and schedules prior to starting construction, helping to enable seamless project delivery.
With the Net Zero Strategy deadline quickly approaching, companies deploying new technologies such as BIM, IoT sensors and data analytics, can help navigate these challenges.
These technologies can also improve efficiency, increase delivery confidence, and hone resource allocation, ultimately lowering project expenses and risks.
Prepare For The Future With Access Construction
Access Construction’s suite of software is designed to help construction companies meet the ever-changing demands of a dynamic industry. Explore our solutions today.
Sources:
UK Trade Skills Index 2023 - About Apprenticeships
UK Construction Industry Forecast 2023-2025
Dwelling stock estimates in England: 2013 - GOV.UK (www.gov.uk)
Building Safety Regulator Strategic Plan 2023-2026 (hse.gov.uk)
