After nearly 10 years of publishing Hard Hat Chat (more to come on our blog’s 10^th anniversary later this year), we know there’s never a shortage of fresh topics and trends to discuss in the commercial construction industry. At the same time, some subjects seem to come up again and again, whether on this blog, in the news media or in conversations with clients and colleagues.

Lately there are three topics in particular that we just can’t quit talking about – primarily because they are having such a big and long-lasting impact. Here they are: the commercial construction headlines that just won’t die – and why:

Labor Shortage Lingers On

We’ve highlighted the ongoing labor shortage in our year-end commercial construction trends blog posts for at least the last five years, and based on what we’re hearing, seeing and experiencing ourselves, there’s just no end in sight. It’s the result of a perfect storm stemming from the economic downturn, when not only did many construction firms and subcontractors go out business, but a number of workers left the industry permanently. Add to that the subsequent economic recovery when construction activity rebounded, and many construction firms just didn’t have the manpower to meet the upswing in demand.

The good news for subcontractors is the labor shortage means higher profitability, because they are working at-capacity and able to charge a premium for their services. But for general contractors and our clients, the result is higher project budgets and challenges in construction scheduling.

There’s no magic bullet that will resolve this issue, but I am certainly optimistic when I see the number of young workers entering the field at all levels – from laborers up to a new crop of building construction management graduates. And when construction activity levels even out, as they are sure to do, this industry’s labor pool will find a new equilibrium.

Let’s Talk About Commercial Construction Tech

In my nearly 28 years in this field, there’s never been as much conversation about the role of technology in commercial construction as in the last five years. This has always been a slow-to-evolve industry where the basics of putting brick over mortar, swinging a hammer and laying steel haven’t changed much in decades. But lately I’m reading more about high-tech construction solutions – from the usage of BIM and drones on job sites, to new software options that streamline project management, to wearable tech for construction workers.

As hard as it is for a veteran guy like me to admit, there’s a new generation of younger workers in this field who want and expect to use technology in their workplace. Technology is second nature for them, and they are increasingly taking on decision-making roles in evaluating which innovations to implement. As these workers move into leadership positions, and a new wave of high-tech solutions is developed, we’ll see exponential growth in technology use across construction firms of all sizes.

At the same time, it’s not always practical in business to be an early adopter. Sometimes, the latest software, drone or robot is simply too expensive for us to invest in or to justify passing the cost along to our clients. But it’s always important to stay abreast with what’s out there, particularly as new innovations become part of our industry’s best practices.

Reshaping the Retail Landscape

Ever since the economic downturn and subsequent recovery, the commercial real estate world has been alive with ongoing discussion around the future of the retail sector, particularly with e-commerce taking a bite out of the market share of traditional bricks-and-mortar brands. Most recently, the shuttering of Sears, Kmart and Toys R Us has led to seemingly endless speculation about what to do with the resulting vacant storefronts.

From a construction perspective, we love these conversations because of the opportunities they represent. Certainly, we’ve had less traditional retail construction work come across our desks as a result of changing dynamics in the retail sector, but on the flip side there are many creative ideas and new concepts being pitched to fill vacant retail and drive more foot traffic to existing shopping centers – all of which leads to new construction jobs and clients for us. As retail finds its way in this new landscape and as developers and landlords pinpoint the right strategy for filling available space, I’m confident those retail headlines will become increasingly positive.

Of course, these are just three of the many topics that are creating buzz in commercial real estate and construction. We look forward to continuing the conversation about these and other trends shaping our industry in the year ahead.