Against the backdrop of the COVID-19 pandemic, Asite—a global cloud platform provider for capital projects and infrastructure developments—has published a worldwide construction report, “Building Resilience: Rethinking our Approach to Construction.” The report examines the effects of the current pandemic and other trends present in the industry, and considers how they will develop in the coming 12 months. It aims to provide the construction industry with a clear view of its future and determines what the industry needs to do to move forward, overcome current challenges and build on the progress taking place.
The construction sector is one of the largest in the world economy and is continually evolving. The introduction of new technologies, the advancement of equipment, changing skill requirements, increasing demand for more innovative projects and shorter time frames mean that things are changing and will continue to do so for the foreseeable future.
2020 was forecast to be a transformative year, demonstrative of the evolving nature of the industry. Steady growth was predicted across the world, including in the United States, where construction was expected to have a Compound Annual Growth Rate (CAGR) of 2.22% by 2022. However, this will be affected by the COVID-19 pandemic, with the sector already witnessing its effects.
This projected growth was supported by private projects and government investment. One example is the U.S. federal government’s Airport Improvement Program, which planned to invest $3.2 billion in the development and modernization of aviation facilities in the country. The program was expected to set a precedent for a wide-range of modifying works required in the country; however, the global spread of COVID-19 and the developing economic fallout seems set to interrupt these projections.
In North America, along with the other regions outlined in the report, a focus on digital engineering and a drive to build better was observed. With the widespread adoption of smart city technologies, large metropolitan areas are preparing themselves to dominate the market, reflected by a forecast CAGR of 18% between 2020 and 2025.
While the projected timelines for projects will be affected, technology and innovation will remain prominent in the industry, as there is a good chance that the answer to mitigating the impact of the virus will lie here.
In the other regions of interest, the first three months of 2020 saw attention move to sustainable building, procurement and energy, with conversations set to continue and develop into the second quarter of the year. As public engagement with the issue deepened and attitudes shifted, we saw the United Kingdom, Europe, India and the United States make significant commitments at a policy level.
In the United Kingdom, increased emphasis was placed on sustainable supply chains, with buyers increasingly seeking out environmentally conscious suppliers. Similarly, in Europe, the impact of the European Green Deal was beginning to be felt as legislation ensuring the use of longer-lasting products and recycled materials on European Union sites came into place. Likewise, New York City’s MTA Capital Plan 2020-2024 outlined plans to transform public transport in the city by improving accessibility, creating thousands of jobs and, more relevantly, reducing greenhouse gas emissions.
However, as priorities shift amidst the pandemic, the question now is whether these commitments will be upheld across these regions.
In the same vein, urbanization is positioned to continue as an important topic of conversation in the next quarter, particularly in India and the wider Asia-Pacific region. Both regions have responded to increasing urbanization with significant infrastructure and housing investment. Vietnam, for example, had planned to increase urbanization from its current 27% to 45.2% by this year. In light of the novel coronavirus outbreak, conversations surrounding the relationship between urban development and new or re-emerging infectious diseases will likely dominate discourse next quarter.
Turning to a forward-looking perspective, the report proposes that the solution to the crisis may lie in some of the shared trends and developments in the regions covered. Digital engineering and the establishment of strategic operating models are key to building resilience and safeguarding the industry.
Now more than ever, the industry needs to come together to prepare and safeguard our society for the future. Construction and infrastructure are vital to our ability to collectively protect the health of our fellow citizens, as well as to educate, feed and house us all.
Digital engineering and the adoption of new technologies, including remote-working technologies, present opportunities for many organizations to continue with business in the face of change. Connecting people around the world will help us learn from one another, and sharing success and innovation will help the industry to advance collaboratively.
Responsibility has been placed on the entire industry to focus on the well-being of our people and society while looking to meet evolving opportunities and future challenges. These focus areas are critical as we enter the second quarter of 2020.
Find the full report here.
