The construction industry as a whole saw major spikes in production and spending in 2018. In fact, spending has been steadily rising in the construction industry year over year, including a sizable bump leading into 2019. This points to the fact that commercial and multi-family residential projects are literally on the rise, opening the door to more opportunities for growth.
Take the Greater Atlanta area for instance. The downtown area alone currently has $4 billion-worth of projects underway, including office space, municipal space and mixed-use residential buildings. This aggressive expansion is representative of the growth a lot of other metropolitan areas are experiencing throughout the country. With this in mind, it would help to look at some of the predicted trends the construction industry can possibly be seeing in 2019.
Reduced Labor Force
With the rise in projects, construction companies are doing what they can to hire on employees and contractors. This has created somewhat of a labor shortage in the field and also brought to light the need for the right liability insurance. In fact, liability coverage for insurance agents who cover architecture, construction and engineering is more important than ever as they work with independent contractors being brought on to new projects.
Since the unemployment rate remains generally low, especially in the United States construction industry, there are many available roles that need to be filled. This makes it difficult for construction companies to attract new employees and can spread them quite thin throughout the year.
Technology and Integration
In the past, the construction industry has been somewhat slow to adopt major technology innovations, but that is changing. Construction project management software is an increasingly enticing resource that construction companies are taking advantage of, making use of its features like bundling scheduling, project management, and time management.
Going beyond better project coordination, the industry is starting to take drone filming more seriously. Drone usage is becoming more popular with construction companies as these flying camera units are being mass produced and cheaper. Drones are helping companies literally see their projects better through aerial photography and videography as well as helping to increase safety around a job site.
Another area of technology that is helping the industry and is set for a big boost in 2019 is the growing field of green tech. More and more new buildings are incorporating green technology into the construction process, building spaces that are environmentally responsible and resource-efficient. From planning to design to construction to demolition, construction companies are diving more thoroughly into the world of green tech.
By constructing environmentally friendly buildings and focusing on the long-term outlook of a new building through energy efficiency, for example, construction companies can help to cut away from the global emissions they contribute to. Some ways that this trend is being pursued is through the use of carbon scrubbing building facades, bricks made of recycled materials and thermally driven air conditioners.
Restaurants Opt for New Buildings
In the past, restaurant chains that are looking to expand their business have gone for the choice of retrofitting empty spaces already erected. Now, the choice is to build new units from the ground up to utilize better technology and environmentally friendly additions. Also, new construction for restaurants is more preferred their property is replicating their concept more consistently among their newer locations.
Another trend in the restaurant construction space is national brands taking advantage of markets where they already have a presence. This is usually executed through opening up a new location in a more desirable are that recently became available. The benefit is that the restaurant can keep operations going at the original location until the new location is ready.
About Genesee General
At Genesee, we strive to provide quality insurance solutions for the Commercial E & S sector. Our longstanding expertise has allowed us to successfully serve your clients for over three decades. Our specialized products include coverages for Transportation, Garage, P & C, Professional, Brokerage Property, Specialty Programs and many more. For more information about our products, we invite you to contact us today at (800) 282-8755.