Every contractor wants to know what’s next. So it helps to think about the industries that are best poised to grow and expand in 2022 and beyond. While no single resource can predict the future with certainty, it is possible to look at a variety of sources and make educated guesses on “what’s next.”
One way we can identify which fields are likely to make capital improvements in 2022 is to examine institutional investors’ stock predictions. When these top-tier analysts advise their clients to invest in an industry, that’s a good sign it’s poised for growth. In turn, growth is a clear indicator that construction will be a part of that sector’s near future.
Another place to look is the news. Many recent headlines hint at growth in some sectors and shrinkage in others. Government spending, new bills, or government intent to spend are additional clues to consider. Finally, construction news, engineering news, architect publications, and industry consultants are all eager to share their insights.
We’ve combined the information from these resources with our own experience and intel to come up with our predictions for the three industries that are very likely to invest heavily in construction in 2022 and beyond. Let us know if you agree.
Many industry insiders expect healthcare construction to boom in 2022. For example, the AIA reports that “Healthcare [construction] is the only sector expected to see positive growth [in 2022], with a projected increase of 1.4%.”
While we disagree that healthcare is the only industry that will increase construction next year, we do concur with most experts who predict that the sector will continue to invest heavily in infrastructure. Even when the urgency associated with the COVID-19 pandemic fades, hospitals will continue to apply lessons learned when building or renovating healthcare facilities. Industry studies predict that hospitals will continue to look for ways to build more flexible care spaces, improve the disinfection processes, and find better ways to isolate potentially contagious patients.
Experts also predict that more and more contractors will become well-versed in infection control risk assessments (ICRAs). Contractors will also be required to obtain Certified Healthcare Constructor credentials and may also need to acquire ASHE’s newest certification, Certified Health Care Physical Environment Worker.
While the pandemic slowed down some industries, according to the National Association of Home Builders, total housing starts increased 8% in 2020 and shot up 12% in 2021. While the NAHB forecasts predict a relatively modest 2.5% growth in this category in 2022, that still means that new home starts are up by 24% compared to 2019. All this category growth is keeping residential contractors and developers very busy. The rapid home-building rate will probably continue to stress the supply chain well into 2023.
(3) Warehouses and the Rise of Urban Logistics
If you got more things delivered to your door during the pandemic, you are not alone. It’s easy to see that home delivery has changed how business works in America. And that means that the infrastructure behind home delivery is also changing.
While sprawling logistics campuses are still being built in the suburbs, multi-level inner-city warehouse construction is also booming. According to GlobeSt.com, “The industrial and logistics asset class has been on a tear as of late, driven in part by COVID-era shutdowns of physical retail and a boom in e-commerce spending. And that’s forced developers to get creative in how they curate logistics and warehouse space that caters to changing occupier needs. On one end of the spectrum, there are multi-level warehouses, which have finally made their way to North American markets.” These urban warehouses promise to revitalize a lagging commercial market as more high rises convert vacant office spaces into logistics hubs.