2021 is coming to an end and a new year is coming. We are all looking forward to the changes in the industry in the new year. Below, we summarize the six major trends of the global construction industry in 2022.
1. The productivity prospect of the construction industry is optimistic
The productivity of the European construction industry is expected to grow throughout 2022, and the current short-term growth is expected to be 3.6%. As we enter the new year, further economic recovery is the top priority of each region. Most notably, governments around the world have begun to pay attention to infrastructure investment as a key strategy for local economic recovery.
A number of large projects across the European continent are planned to begin to increase in the coming months. These plans are rich in content, including the London trans railway project in the UK, the ongoing ABC + de expressway project in the Baltic Sea, and the natural gas network development plan in Germany. It is expected that a wide range of infrastructure projects in Europe will continue to promote the demand for new and old heavy equipment in the next few years.
2. The pressure of equipment supply chain continues
Although the productivity of the construction industry sends a positive signal, it is expected that the supply of equipment will still face great challenges in 2022, and global equipment manufacturers will continue to solve the problem of order scheduling to cope with the continuous increase of demand. However, the production capacity is affected by the global shortage of computer chips and the rising cost of raw materials, resulting in the extension of delivery time. Construction enterprises may need to make up for the shortage of equipment through other options, such as buying second-hand machinery or leasing. The European Leasing Association predicts that the equipment leasing market will grow by 5.6% in 2022.
3. Offline or linkage industry activities
In the past two years, the epidemic has restricted and affected many industry activities and exhibitions. Most activities in the heavy machinery industry are transferred to online.
In 2022, dozens of on-site trade exhibitions, conferences and events are back on the agenda. However, many organizers are paying attention to the variation and dissemination of covid-19, and may consider combining on-site activities with online activities.
One of the main activities of the return in 2022 is the high-profile Bauma exhibition in Germany and China. The last Bauma exhibition in Munich, Germany was successfully held in 2019, attracting nearly 630000 visitors and more than 3500 exhibitors.
4. Increased complexity of operation
In the new year, construction companies and other heavy machinery users will also face many operational challenges. The shortage of skilled workers, the rising cost of building materials and stricter environmental protection regulations are all problems that industry enterprises have to face.
Europe's labor market is trying to recover from the impact of the epidemic, but the employment rate is still lower than the level before the outbreak. Observers point out that the working hours of employees in Europe have decreased by 4%, and nearly 2.5 million people are still in work retention plans.
In terms of raw materials, many civil contractors feel the impact of price changes in 2021. A recent survey shows that up to 92% of contractors' projects are affected by unpredictable costs, especially materials such as steel, pipes and wood.
In the EU, equipment manufacturers and end users will continue to be affected by the upgrading of environmental protection policies. These laws and regulations are part of the European Green agreement policy aimed at addressing climate change and environmental pollution. EU Member States will update their climate and national energy plans in 2023 to meet the requirements of the green agreement.
5. Unavoidable digital drive
The construction industry is one of the most technologically advanced industries in the world, especially in mechanical innovation and industrial application. However, in terms of extensive digital drive, the action of the construction industry is still relatively slow. Over the past two years, the industry has been pushing itself forward, adopting new digital tools and services to help managers quickly respond to the changing environment.
Investment in scientific and technological innovation will reach a record level in 2021, and this trend will continue until 2022. Not only have enterprises in the industry increased their investment in technology, And "Contec" (Construction Technology) startups are also growing exponentially throughout the industry. These technology companies are providing many innovations in software systems, including platforms for fleet / inventory management, part replacement, market trend monitoring, etc. the combination of modern data intelligence and these technologies will help enterprises make better and more informed business decisions at any time now.
Other digital solutions include health and safety applications, carbon emission calculators, and online platforms for buying and selling used machines. Business owners, fleet managers and everyone in the industry need digital and visual tools more than ever to simplify tasks and reduce management burden.
6. Development trend of green environmental protection
The future of heavy equipment must be green. Many manufacturers around the world are developing more environmentally friendly next-generation models. Popular brand JCB has launched a variety of electric mini excavators and telescopic forklifts. Caterpillar recently launched a new type of wheeled excavator, which can be powered by biodiesel and meet the emission standards of EU stage V and US EPA Tier 4 final. Volvo Construction equipment has confirmed that 35% of its equipment will be electrically driven by 2030.
The heavy equipment leasing department is also investing in the environmental upgrading of the fleet. Companies such as Boels have ordered a large number of electric equipment conforming to EU stage v. From suppliers to end users, the whole industry is committed to zero carbon emissions. By 2022, this trend is expected to accelerate with the emergence of more advanced products and hydrogen fuel equipment.
We look forward to 2022. Even though it is full of unknowns and challenges, opportunities are still around us. We believe that the pace of industry development will not slow down.
