It’s almost the end of the year. You know what that means: It’s time for sweets, time with family and friends, and everyone’s favorite end-of-year activity: prognostications about the next year! With so many trend reports coming out, we had to get in on the action. We’ve got a few recommendations for 2023 to give you a good start to the new year.
Trend #1: Growth!
You may have heard some pretty dire predictions in the last few months. Unfortunately, they’re not totally without merit: With recent interest rate hikes and inflation, the demand for new, single-family housing is down. However, that doesn’t mean that the industry will suffer. In fact, the worldwide construction market is expected to grow to $10.5 trillion in 2023.
Where’s this growth coming from? Well, in the United States, while housing demand overall is down, costs for housing initial construction and the demand for nonresidential construction – such as manufacturing – is growing. And thanks to federal funding, infrastructure projects like bridges and highways should see a boost as well. Only 19% of the $1.2 trillion provided by the Infrastructure Investment and Jobs Act of 2021 has been used, so the money is out there. See if you can get in on the action.
Trend #2: Sustainability
As climate change becomes a more pressing issue in our society, sustainability in construction is quite a hot topic. Green building seeks to create structures that create as little waste as possible without contributing to emissions. In fact, the concept of net-zero buildings envisions structures that produce as much energy as they produce in a year, saving money down the line. This is achieved through the installation of green energy producers, using sustainable building materials and more. There’s also a growing demand for buildings and communities that can withstand severe storm conditions and avert costly repairs, like Babcock Ranch in Florida.
The materials may make the process more expensive and slightly more involved than the average project, but charge appropriately, and this should be remedied. And it’s not just private investors that have the power here: Thanks to the 2022 Inflation Reduction Act, the federal government has earmarked $369 billion specifically for green manufacturing and energy. It may pay to investigate green building standards, such as LEED, or invest in sustainable building supplies with more durability and fewer maintenance needs.
Trend #3: Working Remote
Hang on a minute, you may be thinking. How am I supposed to pour a foundation or dig a ditch from home?! Naturally, there are some jobs that cannot be done from home. However, for administrative jobs and certain phases of construction like planning, working remotely is an excellent way to save on overhead for your organization – and your clients’, too.
It’s also instructive to understand where your future jobs may be coming from. Although remodeling activity is set to decline in 2023, home equity per homeowner has been at historic highs this year. This could allow homeowners to leverage their home’s value through home equity loans in order to finance renovations, like home offices and more. Make no mistake: With 50% of Americans wanting to continue working from home, remote work is here to stay.
The next year, while full of uncertainty, definitely holds opportunities for those willing to seize them, and we’re happy to help here at SANY New York. From all of us here, we wish you a safe and enjoyable holiday season and a happy and lucrative new year.