THE 2022 STATE OF THE CONSTRUCTION INDUSTRY

STATE OF THE INDUSTRY

 5% increase in engineering and construction spending levels compared to 2021.

 $7.28 trillion was what the Construction Market was valued in 2021.
 12% increase in total construction across 2021 compared to 2020

GLOBAL CONSTRUCTION DEMANDS ARE GROWING

 Industry needs to build 13,000 buildings each day between now and 2050 to support an
expected population of 7 billion people living in cities.
 1.55 million new housing units planned annually in the U.S. — up from 583,000 in 2009.
 Predicted 35% global growth in next 10 years.

THE RISE OF NEW BUILDING METHODS

 58% of owners said they’ve used or plan to use design-build, moving away from traditional
design-bid-build.
 Design-build projects are completed 102% faster than traditional design-bid-build projects.
 23% of firms report they are taking steps to improve jobsite performance with lean construction
techniques, tools like BIM, and offsite prefabrication.
 4.7% compound annual growth (CAGR) in modular construction by 2026 is predicted.
 About 90% of firms using prefabrication report improved productivity, improved quality, and
increased schedule certainty compare to traditional stick-built construction.
 14% of trades report prefabricating more than 50% of their work in the shop versus field.
 13.6% compound annual growth (CAGR) in the construction robot market is predicted between
2021-2026.

Autodesk Blog: https://constructionblog.autodesk.com/construction-industry-statistics/

UNDERPERFORMANCE IS AN INDUSTRY WIDE ISSUE

 72% of firms say projects have taken longer than anticipated.

 46% of firms report a project was postponed in but was rescheduled, but 32% had projects
postponed or canceled and has not been rescheduled.
 44% of firms are putting longer completion times into their bids.
 Over 50% of engineering and construction professionals report one or more underperforming
projects in the previous year.
 69% of owners say poor contractor performance is the single biggest reason for project
underperformance.
 68% of general contractors reported experience problems “getting off the job” on at least 25%
of their projects.
 66% of general contractors are carrying added costs from overtime/second shifts on at least
three quarters of their projects due to schedule slippage, with 50% of them needing to extend
the project end date.
 Just 25% of projects came within 10% of their original deadlines in the past 3 years.
 And only 31% of all projects came within 10% of the budget in the past 3 years.
 Large projects typically take 20% longer to finish than scheduled and are up to 80% over budget.
 98% of megaprojects become delayed or over budget.
 77% of megaprojects around the globe are 40% or more behind schedule.

CONSTRUCTION COSTS ARE RISING

 6% increase in wage and salaries for construction workers in 2021.

 84% of firms report construction costs have been higher than anticipated.
 14.1% increase in construction building material November 2021 YTD, tripling the increase of the
prior year.

Autodesk Blog: https://constructionblog.autodesk.com/construction-industry-statistics/

REWORK HAS BECOME AN EXPENSIVE STANDARD

 14% of all rework in construction globally is caused by bad data.

 Up to 70% of total rework experienced in construction and engineering products are a result of
design-induced rework.
 52% of rework is caused by poor project data and miscommunication.
 Meaning, $31.3 billion in rework was caused by poor project data and miscommunication in the
U.S. alone in 2018.
 Roughly 4-6% of total project cost is the median cost of rework—but only taking into
consideration direct cost or reported rework.
 9% of total project cost is closer to the actual total cost of rework—considering both direct and
indirect factors combined.
 Between 2% and 20% of total costs is the estimated amount of rework, which has a negative
impact on a project schedule.

LABOR SHORTAGE IS AN INDUSTRY WIDE CONCERN

 62% of contractors report high levels of difficulty finding skilled workers.

 74% of contractors say they are asking skilled workers to do more work.
 72% of contractors report a challenge in meeting project schedule requirements.
 60% of contractors are putting in higher bids for projects
 The number of workers who are either employed or unemployed and looking for work
decreased by just over 2.3 million people since February 2020.
 44% of firms indicated labor shortages caused them to lengthen completion time for projects
already underway.
 73% of firms report it will be more challenging to fill hourly craft positions.
 Percentage of young construction workers declined by 30% from 2005-2016.
 40% of construction jobs were lost between 2006-2011 due to the recession.
 337,000 unfilled construction positions in December 2021.
 21.4% industry wide turnover rate, making it one of the highest rates of all industries.
 16-20% of an individual’s base salary is the average cost of a turnover.
 29% of firms report investing in technology to supplement worker duties.
 29% of firms report they are providing incentives and bonuses to attract craft workers.
 92% of contractors report being at least moderately concerned about their workers having
adequate skill levels.

Autodesk Blog: https://constructionblog.autodesk.com/construction-industry-statistics/

WORKFORCE AT A GLANCE

 12.8% U.S. Construction industry is unionized.

 42 years old is the average age of a U.S. construction worker.
 Only 11% of the U.S.construction workforce is female.
 32.6% of U.S. construction workforce identifies as Hispanic or Latino.
 Only 13% of construction firms are women owned.

MEASURING TRUST IN CONSTRUCTION

 56% of high trust construction companies report good (low) turnover rates – saving them up to
$750,000 annually.
 High trust construction firms are 2X as confident in meeting project deadlines – saving them up
to $4 million annually.
 At high trust companies, 4 out of 5 projects are for repeat customers, potentially increasing
gross margins by 2-7%.
 High trust construction companies are 2X as likely to be explicit about requests.
 51% of high trust construction firms would retain their staff even without confirmed pipeline of
work.
 43% of high trust construction companies make collaboration central to how they work.
 High trust companies are 2X more likely to have managers that share consistent feedback.

Autodesk Blog: https://constructionblog.autodesk.com/construction-industry-statistics/

CHALLENGES IN PRODUCTIVITY

 45% of construction professionals report spending more time than expected on non-optimal
activities.
 $1.63 trillion could be saved annually from infrastructure productivity changes.
 35% of construction professionals’ time is spent (over 14 hours per week) on non-productive
activities including looking for project information, conflict resolution and dealing with mistakes
and rework.
 60% of general contractors see problems with coordination and communication between project
team members and issues with the quality of contract documents as the key contributors to
decreased labor productivity.
 68% of trades point to poor schedule management as the key contributors to decreased labor
productivity.
 50% or more impact on productivity as a result of issues with construction logistics.
 10% impact on productivity as a result of late crew build-up.
 50% variation in productivity of two groups of workers doing identical jobs on the same site and
at the same time. This gap in productivity was found to vary by 500% at different sites.
 30.9% of construction industry professionals say that the top reason for miscommunication is
unresponsiveness to questions/requests.

USAGE AND IMPACT OF CONSTRUCTION TECHNOLOGY

 50% of E&C firms (and 33% of project owners) plan to continue building with significant
investment in technologies designed to enhance their delivery of capital programs.
 Only 16% of executives surveyed say their organizations have fully integrated systems and tools.
 Only 18% of firms reported consistently using mobile apps to access project data and collaborate.
 53% of large general contractors are utilizing software to manage safety and/or inspections on at
least half of their projects.
 63% of contractors are currently using drones on their projects.
 37% of contractors expect to adopt equipment tagging by 2022.
 33% of contractors expect to use wearable technology in the next three years.
 90.9% of firms report using smartphones on a daily basis for work purposes.
 62.4% of companies report using mobile devices on the field for daily reporting.
 21.4% of construction firms use 3 or more mobile apps for their projects.

Autodesk Blog: https://constructionblog.autodesk.com/construction-industry-statistics/

CHALLENGES TO CONSTRUCTION DIGITIZATION

 95% of all data captured in construction and engineering industry goes unused.
 19% UK construction firms say that their projects are entirely paper-based.
 36% of construction professionals cited the reason technology failed was because of poor fit
with current processes and procedures.
 27.8% of contractors do not bid on projects involving BIM.
 35.2% of construction firms cite “lack of staff to support the technology” as the primary limiting
factor to adopting new technology.
 23.6% say “none” of the software applications they use integrate.
 28% of UK construction firms say that lacking the information they need on-site is the single
biggest factor impacting their productivity.
 59% of companies state that their workforce doesn’t have the skills needed to work with BIM.
 56% of construction firms do not have a dedicated R&D budget.

STATE OF DATA IN CONSTRUCTION

 In the last 3 years, the volume of available project data doubled.

 75% of respondents stated an increasing need for rapid decision-making in the field.
 Only 36% of firms have implemented a process for identifying bad data and repairing it.
 14% of all construction rework may have been caused by bad data creating $88.69 billion in
avoidable rework globally.
 79% of contractors are using software to capture data and manage information.
 60% of contractors rely on one tool.
 74% of all the multi-tool contactors stated that they end up relying on one primary toll to track
key processes.
 58% of contractors are using standardized inputs on at least half of their projects.
 41% of contractors agreed that non-standardized data input leads to inconsistent, inaccurate,
incomplete, and unusable data.

Autodesk Blog: https://constructionblog.autodesk.com/construction-industry-statistics/

OPPORTUNITIES FOR SOFTWARE AND TECHNOLOGY

 70% of contractors believe that advanced technologies can increase productivity (78%), improve
schedule (75%), and enhance safety (79%).
 52% consider the needs of field staff a top consideration for investing in technology.
 But only 28% actually receive feedback from field staff before investing in technology.
 60% of general contractors and trades feel using software to manage safety and/or inspections
during construction is of high value to improving this process.
 Within 10 years, full-scale digitization could lead to savings between $0.7-1.2 trillion (13- 21%) in
the Design & Engineering and Construction phases and $0.3-0.5 trillion (10-17%) in the
Operations phase.
 AI has the potential to increase the construction industry’s profits by 71% by 2035.
 AI is forecasted to reach $4.51 billion by 2026 in the construction industry.
 61% report BIM processes reduced project error.
 And 55% report BIM processes reduced the time required for communications.
 Additionally, 82% of BIM users report a positive return-on-investment.
 47% of construction firms use third-party tools, with around 60% leaning on desktop applications
and 40% using cloud-accessible ones.
 32% of owners and contractors use internally developed tools.

Autodesk Blog: https://constructionblog.autodesk.com/construction-industry-statistics/