The month of April showed us that while the COVID-19 Omicron variant will likely subside, pandemic-induced issues remain rampant—from labor shortages and supply chain delays, to rising fuel prices and truck driver gaps, we can expect further challenges as we navigate construction projects across the country.
Additionally, with the Russia-Ukraine war, costs and availability of some key materials such as copper and aluminum will be affected—compounded by inflation, which is on the rise, pushing costs even higher than normal.
Lastly, we revisit the importance of cybersecurity. With all the world events and adoption of technologies to support remote work, it's prime time for cyber criminals to strike. Are you working in a secure environment? Find out what entails a truly secure construction project management system in this new security blog.
Will Construction Labor Shortages Continue Through 2022?
The short answer - yes, absolutely.
In fact, many project and business owners will likely need to hire “thousands of additional workers” each year, from 2022 and over the next several years, to “satisfy the continuing demand for homebuilding and private nonresidential structures,” as well as projects funded by the Bipartisan Infrastructure Law (ref).
In 2021, 61% of firms said their projects were being delayed because of workforce shortages, and 89% of contractors reported having a hard time finding craft workers (ref).
KEY TAKEAWAY: Construction labor shortages will be compounded by the industry's continued supply chain issues, so capital project owners and business owners can anticipate delays with current projects and future infrastructure projects.
However, remain optimistic because according to a new report released by Dodge Construction Network, successful owners are navigating ways to overcome these challenges through digital transformation of their project management processes.
Owners are Driving Digital Transformation in the Construction Industry
We recently surveyed construction project owners impacted by the $1.2 trillion Bipartisan Infrastructure Law, along with Dodge Construction Network—an independent research consultancy and thought leader in the architecture, engineering and construction industry—and the result is a comprehensive report that shares the true state of the industry when it comes to digital transformation. Our findings were remarkable.
85% of construction project owners surveyed have begun their digital transformation journey to migrate spreadsheets and silos of information into a connected construction platform that flows information between internal departments and external designers and contractors.
KEY TAKEAWAY: Owners of construction projects are the leaders in this transformation. Examine your workflows and look for your own low-hanging fruit (Phase 1). If your organization has fully adopted a digitized project management information system, you’re ready to turn your focus to transforming intercompany workflows (Phase 2). Click here to learn more about Phase 2 of digital transformation.
Cybersecurity Matters, Even in Construction
In the past several years, the dramatic shift to cloud technologies combined with remote work, has created a golden age for cyber criminals.
How we conduct business, how we connect to applications and go through our daily work, can all carry some risk of exposure—especially with threat actors taking advantage of current events, such as the war in Ukraine.
The first six months of 2021 saw ransomware attacks skyrocket so quickly that the monetary volume actually eclipsed the entire volume of 2020's full-year total of $304.6 million. The cost of a ransomware breach has reached $4.6 million dollars—a figure that includes escalation notifications, lost business, and response costs.
At one time or another, you’ve probably wondered what's so important about construction data and why anyone would want to steal it. It's just construction information at the end of the day, right?
KEY TAKEAWAY: Unfortunately, threat actors actively target the trillion dollar construction industry because it's a known laggard where cybersecurity is concerned.
The Definitive Guide to Digital Transformation for Owners of Capital Improvement Programs
Download our Definitive Guide to Digital Transformation for Owners of Capital Improvement Programs and learn why leveraging an advanced digital construction management solution like e-Builder Enterprise—which is designed for owners like you—will effectively aid in managing the funding, tracking and reporting of your infrastructure-related projects. Get your complimentary guide.