The construction industry is one of the UK’s largest industries with an annual output of £110 billion and a vital contributor to the country’s economic growth. However it is not immune to challenges and in recent times has witnessed an unprecedented amount of obstacles from supply chain challenges to labour shortages to rising costs.
In this blog post we explore some of the biggest challenges to face the construction industry in 2024 and ways you can tackle these head on.
Undoubtedly one of the biggest issues currently facing the construction industry is a labour shortage, with the Construction Industry Training Board predicting an additional 225,000 workers may be needed before 2027 to meet growing demand. There are multiple reasons for the lack of labour, one is the fact the construction industry is an ageing industry with 61% of the workforce expected to retire in the next decade, and falling apprenticeship numbers of younger workers joining the industry. Secondly, when the pandemic hit in 2020, many workers were made redundant due to construction projects grinding to a halt, and these workers have since either retired or found jobs in other sectors and are not returning to construction.
Construction firms need to be looking at ways to attract younger skilled workers, and more importantly, how to keep them. Creating a culture of collaboration and good communication here can help significantly and giving workers the tools to help them achieve that. Regular training, reviews and providing a motivating and positive working environment can also help.
Cost overruns are a significant challenge for almost all businesses operating in the construction sector and is affecting 9 out of 10 projects in the UK currently. Rising costs of raw materials and the fluctuating nature of these make it very difficult for firms to accurately forecast costings which is resulting in overruns and affecting the overall profitability of projects.
The government has set a goal that by 2050 the UK will be net zero, but with the construction industry accounting for approximately 40% of all UK emissions alone, that target poses some big questions for firms on how they will achieve it. Firms will need to look at and undertake significant investment in vigorous carbon assessments and adopt greener skills and technology.
Construction firms are also facing greater than ever before pressure to maintain health and safety standards. The construction industry was ranked the most dangerous industry to work in, in 2021, and has one of the highest rates of work related injuries. In today’s claim culture this can have costly ramifications for firms as workers claim compensation. Therefore, setting up digital reminders for health and safety training and maintenance checks should be fundamental to help you keep on top of your responsibilities.
Good project management requires clear lines of communication between all parties, and everyone working in parallel, however it is common for communication gaps to occur between on-site workers and those based in the office. Unaligned thinking and lack of communication are responsible for many issues such as inaccuracies, cost overruns, delays and can result in unrealistic expectations or missed tasks.
To overcome communication difficulties, it is important for managers to set clear guidelines to ensure everyone involved stays up-to-date. Daily summaries can be an effective way to keep everyone in the loop and documenting all paperwork in a central location that can be accessed anytime, by anyone involved in the project.
Haphazard document management is a very real issue that can lead to costly errors. With so many documents per project such as contracts, invoices, certificates, planning files and orders it can become difficult to keep track using manual document management.
The construction industry is notoriously slow at adopting new technology, and was voted second least most digitised industry by McKinsey Globe Institute but this needs to change! Here at Pegasus we designed our construction solution with to combat the issues being faced head on.
One of the biggest ways to tackle the challenges facing the construction industry is by embracing technology and utlising software to assist with all areas of project management from cost management, document storage, communication and collaboration, time management and much more.
Overall, the outlook for the construction industry is positive and demand within the industry is continuing to increase year-on-year, but there are undoubtedly some large challenges cause headaches for construction firms. Labour shortages, increased costs and strict regulations are some of the biggest issues at present.
Investing in a robust solution to help manage all aspects of construction projects from planning and costing, right through to legislation management, time keeping and document management will help you stay on top of your costings, time keeping and legislative requirements and help drive efficiency and productivity.
For more information about our construction solution, CIS 5, please contact us today to arrange a bespoke demo and to discuss your requirements further.
Posted On: May 23, 2024
