A recent report was published by the ASA that is titled “What Does The Future Of The Construction Industry Look Like?
I have enclosed some of the more important items for your review and I am giving you my opinion on the various notes.
“ The Rap Council anticipates for example, that the price of commodities will increase, driven by growth in the currently undeveloped or underdeveloped world. The construction industry also could see an increase in labor-only contracts as projects owners strive to control material purchasing in order to take advantage of fluctuating material prices. “Subcontractors at all levels will need to learn to overcome price objections,” Mello added.(Negotiating Skills.)”
We can definitely expect gas prices to continue to go up! Of course; all materials that have petroleum in their manufacturing process will definitely go through the roof!
Contractors and subcontractors will have to work smarter rather than harder! Use technology wherever possible.
I do agree that you need to become an expert at negotiating!
“More and more, other members of the construction team will demand professional subcontractors-substantiated by professional behavior. “Qualification and professionalism will mean more than certification,” Mello predicted, adding that “subcontractors will have to differentiate themselves through marketing and sales, not just provide the low bid.”(Professionalism Must Be Raised!)”
I have been preaching for a long time that we need to raise the bar on professionalism! You need to do whatever is necessary to adapt to the changing times and get ahead of the crowd!
“The Rap Council furthermore, expects to see more general contractors self-performing, while project owners will want to pare down the number of specialty trade contractors on projects, for management and control purposes. Meanwhile, the specialty trade contractors that remain will demand better management skills of their employees. (21st Century Management Tools & Skills.)”
I disagree with their assessment on this issue!
Obamacare and other regulations that are coming down on employers is going to encourage the use of subcontractors and virtual assistants. Employers are going to downsize in order to reduce the number of employees to lessen the impact of ObamaCare.
Companies will want to utilize the most efficient workers available!
You cannot expect a carpenter to efficiently do the work of an electrician or plumber! Time is money and the right technician will get the task completed a lot faster than a novice.
“Worldwide competition for labor will drive up labor costs, the Rap Council believes, especially as the economies of currently undeveloped and underdeveloped countries rapidly expand the access to cheap foreign labor declines.
The construction industry will experience numerous other changes, the Rap Council believes, including changes in funding and purchasing technique. Fluctuating materials costs may drive the development of new contract terms, which could in turn create new inequities. More “manufacturer-like” processes and work sites will be introduced, and technology will help address the lack of precision in plans and specifications, as well as drive improved and faster payment. Changing technology could also bring new problems, such as a continued devolution of subtle communication skills leading to incomplete or unprofessional plans, specification and contracts. Generation and cultural differences also could present challenges.(Professionalism Will Give The Prepared An Edge!)”
Once again, the signs point to the need for you to become more professional! Become the “go to” person or company that everybody knows delivers and is professional!
I see the coming changes as opportunities for those companies that are willing to take the necessary steps to become the most qualified in the industry!
If you want to read the complete report you can read it by clicking here.