Spring means it’s time to look ahead to Summer
Higher temps (and pollen counts) can only mean one thing – spring is here!
And with its arrival, it’s essential to begin strategizing for the busy summer construction season ahead.
The anticipation of warmer weather brings with it an increase in construction projects, both commercial and residential. By planning now, businesses can effectively navigate the increased demand and capitalize on the projected growth in the construction market.
Evaluating supply chain logistics, securing necessary materials, and ensuring that a skilled workforce is ready to meet the summer surge are all items that should appear on your seasonal to-do list.
Early planning will set the stage for a successful and productive construction season.
Preparing for Increased Summer Construction Demand
Forecasters anticipate a surge in both commercial and residential construction projects going into Summer 2025.
Strategic preparation now will enable businesses to gain a comprehensive understanding of what is required to meet demand efficiently.
- Market Forecasts for Summer 2025: Anticipate a 3% growth in global construction output, with the commercial sector contributing significantly.
“The construction industry stands at a pivotal juncture as we look ahead to 2025. Despite facing a complex landscape marked by both challenges and opportunities, the sector is poised for growth.
The demand for new housing remains robust, fueled by population growth, urbanization, and changing demographics. Additionally, the shift toward remote work has increased the desire for suburban and rural living, further boosting residential construction.
Global residential construction output is projected to increase by an average of 3.4% annually through 2025, according to ResearchandMarkets.com. The US market is expected to see a similar growth rate, bolstered by strong demand and favorable economic conditions.”
- Regional Hotspots: Cities like Buffalo, Indianapolis, and Philadelphia are projected to experience a 3% to 4% increase in home prices, indicating robust construction activity.
“In turn, home values in Buffalo are expected to climb another 3% this year, following a 6% jump in 2024.
The market frenzy has also spread to other Northeastern and Midwestern cities like Indianapolis, Providence, Hartford and Philadelphia, where Zillow projects prices will rise 3% to 4% in 2025.
“In many of these areas, construction has really struggled to keep pace,” Olsen told CNN.
“The reason new construction is so important right now is that existing owners are locked in. That’s a lot of the determinant of pressure on prices.
- Supply Chain: Ongoing disruptions necessitate strategic planning to ensure material availability during peak seasons.
“Going into 2025 and beyond, long-term planning will be essential,” explains Chris O’Hala, director of construction and energy risk engineering at The Hartford. “Changing business conditions should prompt construction leaders to better evaluate their firm’s culture, expand markets, adopt innovation, upskill workers and even streamline succession planning”.
Labor Considerations:
“[Wydeven and O’Hala] stress that all construction leaders – regardless of company size – are now in a crucial moment to examine and redefine employee roles and develop better ways to recruit, retain and upskill their talent.
“It’s always been the case that construction companies that invest in training and automation are better positioned for success,” says Wydeven. “What’s different about the future hiring environment is how difficult the potential loss of talent and senior-level expertise remains. Organizations need to plan ahead at this very moment.”
Tips for Ensuring a Skilled Workforce Now…and in the Future
from The Hartford:
- Create opportunities for peer-to-peer knowledge transfer
- Envision new advancement opportunities for all current roles
- Promote trade careers in communities and schools
- Invest in internal training to upskill current staff and attract future talent
- Develop your work culture with an emphasis on wellness and safety programs
Inventory Management Tips for Peak Season Readiness
Efficient inventory management is crucial for construction companies as they enter the busy season.
Those who successfully forecast demand and maintain strong supplier relationships will have a leg up on their competition.
- Demand Forecasting (Planning): Analyze market trends to predict product demand accurately, ensuring optimal stock levels.
- Supplier Relationships: Strengthen partnerships to secure priority access to high-demand materials.
- Technology Integration: Adopt inventory management software to monitor stock levels in real time and automate reordering processes.
If you haven’t already started, you’re already behind
The value of early preparation cannot be overstated. By anticipating the demands of the upcoming construction season, companies can optimize operations and mitigate challenges, building effective teams and ensuring the availability of essential materials and equipment – all while securing the best rates and transportation options.
Your organization’s leadership team is where the job starts. At TZR, we know the industry inside and out and have access to a wide network of strategic construction professionals who know how to set the stage for success this season. The time to connect with us is now.
