As the industry moves forward, it is important for contractors to stay informed on the latest funding and construction developments and how they apply to their specific business. Key areas of focus include inflation, clean energy initiatives and effective talent management. By staying up-to-date, contractors can position themselves for success and capitalize on growth prospects.
Inflation
One factor that will impact the construction industry is inflation, as it can lead to rising costs of materials and labor.
“Fluctuations in material prices, oil and gas and the ability to obtain resources will all have an impact on contractors,” said Managing Partner for Construction, Wes Winborne.
The increase in prices will make it more costly for builders and developers to complete projects. To succeed, contractors must develop strategies for pricing their services and managing their resources effectively – especially when working on state and federal projects. They should also review their contracts with suppliers while factoring in potential inflation.
“I would suggest that contractors pay special attention to their balance sheets, the cash they have in the bank and their relationship with their bankers,” Winborne said. “They need to make sure that there are budgets in place when completing projects, and they really should consider having regular meetings with their accountants and bond agents to understand where they are with projects.”
Clean Energy
There is a growing trend toward clean energy and environmentally friendly materials as more contractors are being asked to focus on sustainable building practices.
“There are a lot of things we’re seeing around clean energy and the materials that are produced being ‘green.’ The construction industry is trying to figure out what that looks like and who those vendors are,” Winborne said.
To stay competitive, contractors are incorporating green materials such as solar panels and energy-efficient systems into their projects.
This shift towards sustainability not only benefits the environment but also presents opportunities for contractors to differentiate themselves from competitors. As the construction industry evolves, the demand for green building practices will continue to grow.
Talent
Currently, there is an increasing focus on retaining talent in the construction industry.
“I’ve had a lot of contractors ask me ‘How do I change my culture?’ In this industry sometimes we don’t realize that maintaining talent is a big deal,” said Winborne.
Creating a culture that fosters employee retention can be a challenge for contractors who have never focused on culture before. To address this, Winborne advises contractors to “develop a strategic plan of what culture means for your business and how to incorporate your people into it.”
This includes understanding what employees value in a workplace, such as work-life balance and opportunities for growth. By taking these factors into account, contractors can create a culture that meets the needs of their employees.
The construction industry is poised for growth with continued federal funding, but contractors must stay informed on factors such as inflation, clean energy initiatives, and effective talent management. By focusing on these areas, contractors can capitalize on growth aspects in the years ahead.
