IMPACT: 2022 Construction Statistics & Trends
Design and development of homes, roads, and bridges – all of these require construction work. Because the construction industry is responsible for creating vital infrastructure for countries, cities, and towns, and because it holds a vast number of construction and engineering jobs, it is the largest and also the most important industry.
The construction industry is responsible for creating vital infrastructures for countries around the globe. As 2022 comes to an end, we’ve reviewed some of the top statistics and trends that impacted the industry and continue to have impact in 2023 as well. According to the latest construction market data, the construction industry size amounted to $8.2 trillion in 2022 (Statista) and is expected to reach $17 trillion by 2029 with a compound annual growth rate (CAGR) of 7.3% (Exactitude Consultancy). Read on for more of the latest construction industry statistics 2022, employment rates, supply chain problems, and the effect the pandemic had on global construction industry statistics.
Industry Growth
Despite its challenges, the construction industry is expected to grow in the following years. Due to rising demand in multiple sectors, such as e-commerce, and government funding for infrastructure, a compound annual growth rate of approximately 5% is expected between 2022 and 2026.
Connected Construction and Tech
Construction work has always involved physical labour and will continue to do so in the future. However, technology and technological advances have found their way into the construction industry, such as IoT tools, augmented reality, robotics, and 3D printing. While these create more vacancies to be filled, modern technology also attracts younger generations to work in the industry.
Talent Challenges
As mentioned before, construction labour statistics show a shortage of workers which has its roots in the 2017 Great Recession and the fact that construction work has a reputation for being dirty, boring, and dangerous. On top of the labour shortage, the industry also suffers from a talent and skill shortage caused by a lack of investment in skill development and advanced training. The outlook isn’t entirely hopeless, however, as there has been a 5% increase in young people choosing this trade between 2019 and 2021.
Higher Material Costs & Supply Chain Issues
As construction industry statistics show, a rise in material costs and supply chain issues haven’t gone unnoticed in the industry. The US isn’t the only country affected by this because global and European construction industry statistics show the same trend. Even before the Covid-19 pandemic, the supply chain was pushed to the limit, with lockdowns and restrictions only amplifying its problems. It is expected that the supply chain will begin to recover in 2022 and continue to do so during 2023 and beyond. While prices for some materials have already gone down, the construction industry suspects that there will be a continued period of ups and downs.
Focus on Safety
Workplace safety is especially important because construction industry accident statistics show the highest rate of deaths across all industries. For example, the fatal injury rate was 10.2% in 2020 and 9.7% in 2019. The best way to improve the construction industry safety statistics (Construct Connect) is to put a greater focus on workplace safety, which, in turn, could help solve the labour shortage problems, too. By making construction work a safe field to work in, the industry will become more attractive to young people when choosing a trade.
Sustainability in the “Smart City”
According to predictions, approximately 66% of the global population will live in cities (Method), which is why construction work should aim to make cities “smarter” and more sustainable. This includes the use of IoT tools and sensors, for example, to measure traffic flow, energy consumption, or traffic flow. Additionally, public transportation is a priority for city dwellers that want to live a sustainable life. For those still reliant on cars, “smart roads” can cut emissions and reduce fuel costs through reduced vibrations. Proper waste disposal systems in cities can increase efficiency and cut the need for fossil fuels.
