A good friend of mine is an executive for the construction company the Cumby Group, and we have been talking of late about how this pandemic will shape the near future of this industry. I am fascinated by how big the impact of this virus has been and how the world has been so destroyed by it, and I am even more fascinated at seeing how many industries and sectors are going to come out of this, and what will change going forward.
With regards to construction, there is certainly going to be huge changes, further big changes, and here is what many in the industry are anticipating.
Switch to Commercial
The housing market looks like it will be completely depleted following the pandemic and for so many construction companies that means that big jobs and projects are bound to be cancelled and switched around. The reality is that buying new houses is unlikely to happen en masse for many years to come, which will leave construction companies looking to commercial buildings rather than focus on residential.
For many years the construction industry worked with self-employed tradespeople who were then sub-contracted. In the last few years however we have seen a real switch from this and many have been taking on full time workers, especially those big groups who deliver multiple projects per year. Given the damage which this virus has had on the sector, we are anticipating more and more companies to focus solely on keeping the sub-contract situation, because this gives them far less financial exposure.
Not every company has the final power and support that the likes of the Cumby Group and that is why so many of those smaller businesses within construction have been forced to close their doors. The result of this is going to be a far higher level of competition between workers, and that is going to be highly beneficial for those groups and companies who have survived the last 12 months. This will not be great for many in the industry however, who may look to change careers in order to secure more work. Ultimately this could lead to a lot of talent leaving the field.
Anything which has impacted the world on this scale is going to mean that there will be trend changes in terms of the types of places that people want to buy. For some this could mean that they prefer a home with more outdoor space having been kept inside for so long, for others it may be the use of certain hygienic materials being used in the building of the property, and many more tweaks and changes which are necessary for so many people who want to live in a better place.
There are certainly some sweeping changes coming but as always this is a very resilient industry and once which is certain to bounce back.