Construction Industry Trends: August 2023 Roundup
August was a green month in construction, with lots of news focused on sustainable building, material reuse, and environmentally-friendly building. We’ll also take a look at the increasing use of robots on jobsites, and the growth in adoption of construction technologies.
The Green Paradigm Shift in Nonresidential Building Construction
The global construction industry is undergoing a significant transformation, driven by the increasing emphasis on sustainability and ecological responsibility. The “Nonresidential Building Construction Global Market Report 2023” examines this shift, illustrating the burgeoning importance of green construction within the sector.
Nonresidential structures are experiencing sturdy growth. Even amid geopolitical conflicts and the lingering effects of the COVID-19 pandemic, the market has shown resilience. While the growth rate is expected to experience some slowdown, it’s projected to end up a $3.2 trillion market by 2027 (up from $2.9 trillion in 2023). These numbers not only demonstrate the sector's vitality but also underscore a global recognition of the need for infrastructural expansion and renewal.
However, what stands out in this story of growth is the shift towards eco-friendly building. Traditional methods are being replaced or supplemented with green construction techniques aimed at establishing energy-efficiency, with a focus on using materials that don't harm the environment. The emphasis is on sourcing sustainable building materials, implementing innovative processes, and aiming to leave a smaller environmental footprint in the long run.
Ultimately, as urban populations swell and the world becomes increasingly interconnected, the nonresidential building construction market is set for expansive growth. Within this growth, the green construction trend is not just a fleeting phase but a pivotal transformation, underscoring the industry's commitment to a sustainable future.
The Booming Recyclables Market
Per Coherent Market Insights (CMI), the Recycled Construction Aggregates Market is on a trajectory to surpass $88.4 billion by 2030 (more than double 2022’s $42 billion in value), expanding at a compound annual growth rate of 9.5%.
Recycled construction aggregates are obtained by processing and repurposing waste materials from demolished buildings and construction sites. The emphasis is on minimizing waste and reducing the dependence on traditionally mined materials like crushed stone, sand, and gravel. We’ve covered many of these eco-friendly initiatives.
Yet, like any emerging market, the recycled aggregates sector is not without its challenges. For example, there are issues with quality, stemming from variations in recycled material composition and properties, that can sometimes be a deterrent. Additionally, the operational costs linked with collecting and processing construction waste can also pose challenges.
Overall, the recycled construction aggregates market's growth narrative is emblematic of a larger global shift towards sustainability. With robust market projections, increasing governmental support, and continual innovations in the sector, the future of construction looks green and sustainable. The challenge lies in balancing quality with sustainability, but with the combined efforts of industry stakeholders, a sustainable construction future seems well within reach.
Growth and Trends in Construction Estimating Software Market
The construction estimating software market is witnessing impressive growth, set to reach a valuation of $1.34 billion by 2023, according to “Construction Estimating Software Global Market Report 2023.”
The upsurge is bolstered by an active global market, with post-COVID increases in construction activity escalating demand for construction estimating software. We’ve covered a lot of what software can do to deliver real-time data, improve margins, enhance project planning, and streamline construction processes in previous articles; forecasts suggest that this growth trajectory is expected to persevere, reaching an impressive $1.87 billion by 2027 with a CAGR of 8.6%.
Construction software like Trimble Construction One can be transformative for contractors. If you’re still on the fence about taking the plunge, let’s talk about the unique challenges your business faces and how Trimble software can fatten hairline margins and increase profitability during tough economic markets.