Significant construction market trends are expected to impact growth in 2024. Although construction revenues have been increasing in previous years, net profits in the industry are slim. To make matters worse, the cost of building materials, is going to rise and inflation continues to impact all aspects of the design build process.
So, construction companies need to look long and hard at areas that can be improved to drive a better bottom line.
Potential supply chain disruptions: Recent shortages in wood, steel, and lumber may lead to the inflation of material costs this year. Lock in prices early, so they don’t surge once your project kicks off. Note that materials always go up this time of year, it’s part of the cycle.
Our job is to always be on the lookout for opportunities to improve the relationship, streamline processes or procedures, or change costing models. We strive to challenge the status quo and work with clients who value the partnership and are willing to make improvements in order to make the relationship smooth and efficient.
Another trend that is impacting bottom line is Building information modeling (BIM): By utilizing BIM, a detailed and precise 3D virtual model that encompasses all the building's components and structures is created thus correcting errors early in the design state and accurately scheduling construction. The market research firm Mordor Intelligence expects the global building information modeling market to reach $23.2 billion by 2026, growing at a 17.6% CAGR from 2021 to 2026.
Tekla is the BIM software that International Ventures (IV) uses on every project where IV is doing the engineering and design to improve the way IV works internally as well as externally with clients. Having a robust BIM model enables IV to exchange information more effectively within the project team and facilitate collaboration to achieve the best outcome.
Commentaires