2022 presented a mix of challenges and opportunities for the property development and construction industry. Despite the efforts to overcome pandemic-related delays, labor shortages, supply chain disruptions, and rising material costs posed significant hurdles. As we venture into a new year, the industry continues to grapple with persistent concerns while also witnessing emerging trends, especially in technology.
Here, we highlight key trends that will shape the industry in 2023.
Modular and Prefab Construction: The Rise of Efficiency Modular and prefab construction methods are gaining popularity among property development companies due to their ability to reduce construction time by half. By leveraging controlled factory environments, these methods minimize weather disruptions. Moreover, off-site construction allows for sustainable design and construction processes, enabling better resource management and waste reduction.
Sustainable Design and Construction: Prioritizing the Environment The property development and construction industry are increasingly embracing sustainable design, operations, and processes. With construction activities contributing to nearly 40% of global energy-related carbon dioxide emissions, reducing environmental impact becomes a paramount goal for industry stakeholders in 2023.
Remote Worksites: Embracing Digital Transformation Although it may seem counterintuitive, the construction industry has also tapped into remote operations. During the pandemic, digital tools and mobile apps enabled certain construction site functions to be carried out remotely, benefiting project managers, inspectors, and foremen. As technology adoption continues to grow in 2023, remote worksites will offer budget and timeline advantages for construction projects.
Robotics & IoT: Revolutionizing Construction Technological advancements such as robotics and the Internet of Things (IoT) have transformed the construction industry. Robots capable of autonomously performing repetitive tasks mitigate the risk of injuries for the human workforce. IoT sensors, using geofencing technology, ensure proper machinery and tool usage in designated locations. These technological disruptors will pave the way for construction advancements in 2023.
New Construction Materials: Innovating for Efficiency To address supply chain issues, soaring material costs, and the demand for sustainable practices, the industry will adopt new construction materials in 2023. Emphasizing recycling of construction and demolition waste and prioritizing products with lower emission footprints, stakeholders scrutinize traditional materials. Inefficient options will be replaced with innovative alternatives.
Talent and Labor Challenges: Navigating Skill Shortages Although technology has assisted with certain aspects of construction, a shortage of skilled labor persists on construction sites. This challenge will likely persist in 2023, necessitating strategies for companies to remain competitive and attractive to skilled employees. Employers must explore various methods to address this issue effectively.
Smart Cities: Transforming Urban Environments Smart devices have become commonplace in homes, enhancing convenience and efficiency. Extending this integration to cities and towns through construction, town planning, and property development can create safer and more user-friendly communities. Smart cities can gather data for decision-making, mitigate traffic congestion, and promote eco-friendly development.
Construction Equipment as a Service: Cost-Effective Solutions To reduce equipment-related expenses, construction companies are increasingly opting for equipment rental services. This shift aligns with the successful software-as-a-service model prevalent in the digital world. Renting construction equipment offers financial and logistical benefits.
New Supply Chain Management Models: Ensuring Resilience The disruptions caused by the global pandemic highlighted inefficiencies in the global supply chain. Organizations are now seeking innovative solutions to mitigate future challenges and ensure resilience. Collaborating with providers that offer novel approaches to supply chain management becomes crucial in addressing potential disruptions.
While this list of trends for 2023 is not exhaustive, it provides insights into the ongoing transformation of property development and construction. We invite you to share any additional trends you believe should be included. We value your input and look forward to hearing from you!
Your Outside Team
Need a bit of assistance with your business? Contact an Outside Accounting team member today and learn more about our fixed fees. You won’t regret it.
Aside from business consultation, we are business accountants Wellington who offer accounting, bookkeeping, payroll services designed to help you achieve greater financial success.
You can click here to speak to a business, accounting and bookkeeping firm. We will give you a call to know more about your needs. We will explain to you how we can improve your business.
Address: Level 2, 182 Vivian Street,
Te Aro, Wellington 6011, New Zealand
Mail: PO Box 24-457, Wellington 6142
Phone: 04 889 2975
As a business owner, reviewing your financial reports each month is essential for maintaining control and steering your business in the right direction. Here are six key reasons why you should prioritize this important task.
Starting your own business is exciting, but handling all the financial details can be overwhelming. Instead of spending your time managing the books, you could focus on growing your business. This is where expert accounting firms like Outside Accounting step in.
Choosing the right accounting software is crucial for your small business, and with so many options available, it can be challenging to decide which one is best. Xero Accounting Software stands out as a popular choice, but what makes it so special? In this article, we’ll explore six key benefits of using Xero for your small business. If you’re looking for a skilled, cost-effective accountant in Wellington to assist with your small business bookkeeping, reach out to the friendly team at Outside Accounting today.
Bookkeeping fraud, including embezzlement and theft from company accounts, can quietly drain your business’s resources for years before being discovered. The consequences can be devastating. This guide will explore how bookkeeping fraud happens and provide five effective strategies to protect your business from it.
Taking control of your small business’s financial operations is a critical step toward long-term success. With accurate financial planning and expert assistance, you can create a roadmap for expansion and growth within your industry. While managing small business finances may seem daunting, following the right steps can make the process both enjoyable and highly profitable.
As a small business owner, keeping a close eye on expenses is essential, and that includes accounting costs. You might wonder if your accountant’s fees are worth it or if you could handle it yourself using online accounting software.
ALL POSTS
NEWSLETTER SUBSCRIPTION