Ten important commercial
construction trends for 2018
By Jim Lamelza
Special to North Carolina Construction News
Commercial construction, like any industry, has its
ebbs and flows, its changes and expectations. Construc-
tion entrepreneurs always keep an eye on the near future,
figure out what's next for their businesses, and get ahead
of their competitors in adopting new ideas or reacting to
inevitable shifts in the market.
With that in mind, here are 10 commercial construc-
tion trends to watch for in 2018.
1. Labor shortages
The 2008 recession caused a serious downturn in
prospects for the construction industry. Since they began
to recover, however, construction companies have had
difficulty finding sufficient skilled workers to meet the de-
mand. While it should be a purely positive sign that three-
quarters of construction companies plan to add
employees in 2018, this is countered by the fact that even
more—82 percent —expect it will remain as difficult, or
even harder, to do so. Companies that solve this riddle,
be it through better training program, higher wages, a mix
of the two, or other ideas entirely, will be at an advantage.
2. Prefab construction
Ever since the early 1900s, when Sears sold prefabri-
cated homes and shipped them to customers in boxes
for them to build on their own, the potential value in pre-
fab construction has been apparent. Building on a con-
trolled assembly line reduces construction time and
costs. For the most part, however, no one has been able
to put this idea to effective use; thus construction has
6 — May-June 2018 — The North Carolina Construction News
continued in the traditional style, with workers and mate-
rials placed on site and buildings raised from the founda-
tion up. Now, thanks to the efforts of companies like
Katerra and buy-in from major corporations such as Mar-
riott, modular and prefab construction are seeing a resur-
gence. 3. Giant companies need more space
The biggest headline example of this is the creation of
a second Amazon headquarters. However, other massive
tech companies are expanding as well. Data center in-
vestment in 2017 far outstripped 2016; given the con-
stantly increasing amount of data companies need to
store on their servers, this trend does not appear ready to
decline. Non-tech sector companies such as General
Electric and Marriott are poised to open new headquar-
ters as well.
4. Automation
Although many labor organizations fear automation's
effect on the overall workforce, new advances have cre-
ated robots that can perform tasks dangerous to human
workers. This covers many industries, but construction
businesses may take note of the robot that can tie rebar
and form bridge decks, both for the safety of its employ-
ees and to help allay the aforementioned issues in adding
headcount to their companies.
5. Resiliency
In 2017, the world was impacted by a remarkable num-
ber of environmental calamities. The devastation in
Puerto Rico was the most newsworthy, but other hurri-
canes, heat and cold waves, flooding, and other disasters
all caused significant destruction. Governments and other
organizations are coming to understand that constantly
putting new buildings in place of the old is too costly, and
a call for more resilient construction has been amplified.
The United States government declared November 2017
to be Critical Infrastructure Security and Resilience Month
as a way to highlight the issue, and projects such as rais-
ing the streets in Miami Beach are potentially just the
vanguard to a more widespread movement in construc-
tion. 6. Sustainability
Somewhat related to resiliency, in the sense of improv-
ing the environmental impact of industry activities, is the
trend towards even more sustainability in construction.
Although most projects incorporate some sustainable ele-
ments, there is a move towards initiatives like mass tim-
ber construction for massive projects such as stadiums,
office buildings, and college dormitories. In addition,
more and more construction companies are recycling
their construction waste from all types of projects—build-
ing, renovation, and demolition.
7. Augmented and virtual reality, and the use of drones
Although the idea of a construction worker with a vir-
tual reality headset and a pair of controllers rather than a
hard hat and a toolbox may seem odd, this technology is
seeing greater adoption across the industry. Through
these systems, workers can control drones that serve nu-
merous purposes, most of them designed for increased
safety. Inspections of high-rise buildings can be carried
out via drone cameras with a minimum of workers mov-
ing around in dangerous areas. In addition, building sites
can be mapped and monitored from angles impossible
for humans to reach. And, finally, AR/VR use may poten-
tially draw in young workers who otherwise would have
had little or no interest in the construction industry.
be voted on in May. Minneapolis has a Southwest light-
rail plan that is ready to go if financing issues are re-
solved. And Boston's Green Line is being 'rebooted',
expanding from Cambridge to Medford, MA, a 4.7-mile
extension. This is on top of smaller projects, mostly in the
area of repair, being planned nationwide.
10. Reduction in growth
Fortunately, a reduction in growth does not mean a
lack of growth. Commercial construction, especially, is ex-
pected to have a double-digit percentage increase in
starts next year, according to industry forecasts from
groups such as Associated General Contractors of Amer-
ica. However, industrial and retail construction are both
expected to see a decline. The industrial construction as-
pect is especially disappointing if true, as 2017 was a
year of substantial growth in that sector.
If you're part of a commercial construction company,
study these trends and use that knowledge to put your-
self a step ahead of the competition. Look ahead, plan
ahead, get ahead.
Jim Lamelza is chief executive officer of DataBid, Inc.,
a construction leads and opportunity service currently
serving certain U.S. and Canadian markets in regions
outside of North Carolina. However, his comments
certainly have relevance here.
8. New regulations
Not all regulations that will impact the industry are
construction-specific; the new tax overhaul, for example,
is designed to have a substantial impact on businesses,
with tax relief for contractors that can now structure
themselves as C-corporations and pass-through entities.
Zooming in on specific locations in the U.S., New York
City now has a law that requires forty hours of safety
training for construction workers, and a new law in Cali-
fornia requires contractors acting as direct contractors on
private construction projects to be "financially responsible
for any wages, fringe benefits and union contributions left
unpaid by subcontractors and their sub-tiers".
9. Increased public transportation investment
As infrastructure problems become more acute across
the U.S., construction companies are seeing increased
business from states and municipalities investing in major
new transportation initiatives, or remodelling existing
ones. For example, Nashville is proposing a $5.2 billion
plan for new infrastructure and transit; this still needs to
Al Windle • 704.945.2176 • awindle@slk-law.com
The North Carolina Construction News — May-June 2018 — 7