Did you know that the global building and construction output is forecasted to climb from $10.7 trillion in 2020 to $15.2 trillion in 2030? This means an increase of 42%.
A surge of publicly sponsored infrastructure projects is expected to help the global building and construction industry recover in the upcoming years. Historically, infrastructure projects have been a significant driver of economic growth.
This investment comes at a time when tight labour markets are restricting and global supply chain disruptions are impeding the delivery of goods. Because of the supply-demand gap, construction and building materials, and labour prices will continue to increase, which could lead to cost overruns, project delays, or even cancellations.
Top 10 Global Building and Construction Markets by 2030
- China: 24%
- United States: 14%
- India: 7%
- Japan: 4%
- Indonesia: 4%
- Germany: 3%
- Australia: 3%
- United Kingdom: 3%
- France: 1.8%
- Canada: 1.7%
- Other: 34%
China is poised for a construction boom as the government looks at infrastructure spending to counteract the real estate decline and aid with the revival of the economy after the Shanghai shutdown.
Anticipated Project Delays
High input cost inflation periods can result in cost overruns, delays, and cancellations of building and construction projects.
We are already observing a rising gap between approvals for construction companies, commencement, and completion in a number of geographic locations, as well as an increase in dropout rates as more and more authorised projects are postponed or abandoned.
Carbon Footprint of Construction
Recent data shows that the worldwide building and construction industry is a major source of carbon emissions. The Royal Academy of Engineering estimates that the global construction sector is responsible for 11% of all emissions, calling for more innovative solutions in the construction sector.
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