flexiblefullpage -
billboard - default
interstitial1 - interstitial
Currently Reading

5 'giant' trends poised to change the face of construction

Giants 400

5 'giant' trends poised to change the face of construction

We’ve identified five emerging trends that are likely to transform the construction market in the near future.


By David Barista, Editorial Director | July 16, 2018

Once a novelty, offsite construction is taking hold across the industry, as labor shortages persist, the Lean movement grows, and tech-based workflows become prevalent. Photo courtesy Katerra

As the BD+C editorial team wrapped up work on the 42nd annual Giants 300 report in late June, a number of intriguing industry trends and themes bubbled to the surface. Some are new to us, others simply confirmed our original notions.

The Giants 300 report agglomerates financial data and business dealings from the nation’s largest architecture, engineering, and construction firms (a record-number 480 firms submitted data this year). The AEC “Giants” are a powerful group. Collectively, they represent 60-80% of all design and construction work completed in the nonresidential buildings market in a given year, depending on the building sector and discipline.

Compiling the Giants 300 report gives BD+C editors a unique, bird’s-eye view of the market. Based on the 2018 report, we’ve identified five emerging trends that are likely to transform the construction market in the near future:

1. Offsite construction is here to stay. Once a novelty, offsite construction is taking hold across the industry, as labor shortages persist, the Lean movement grows, and tech-based workflows become prevalent. Major GCs are moving toward manufacturing-based operations, and select owners are requiring prefab on projects.

2. Silicon Valley is eyeing AEC. Billions in venture capital and strategic funding are flooding the AEC market, as nontraditional industries (especially tech) see dollar signs in the transformation of this antiquated, low-margin industry. A Built Worlds report identified 25 VC funds, strategic funds, and accelerators actively targeting AEC. The industry’s new darling, Katerra, nabbed a whopping $865 million from SoftBank. There’s plenty more to come.      

3. AI adoption is on the horizon. BD+C has reported on a host of early AI-tech adopters in the AEC market, including Mortenson Construction and WeWork. With the rise of “off-the-shelf” AI solutions, rampant adoption of AI is near. A recent McKinsey report found use cases for AI across the entire project lifecycle.

4. Data is the bottleneck. If tools like AI and AR/VR are the race cars, then data is the fuel—and the industry has a fuel crisis. Experts cite multiple reasons for the data deficit: the siloed nature of AEC, timeliness of the data, “fuzzy” data, and questions about who owns and controls the data. Until the industry can solve its data bottleneck, AEC firms will have a difficult time realizing the full potential of tech tools.

5. Smart buildings are the new green. Prediction: Within seven years, the U.S. market will have a “smart certified” designation, and the label will be as prominent as green/sustainability, health/wellness, and resiliency. Why? Because smart buildings are highly marketable, owner friendly, productivity focused, and resource efficient.

Download BD+C’s report, “Commercial Construction Market Trends: 2018 and Beyond,” here.

Related Stories

Giants 400 | Oct 6, 2022

Top 60 Medical Office Building Contractors + CM Firms for 2022

PCL Construction, Adolfson & Peterson, Swinerton, and Skanska USA top the ranking of the nation's largest medical office building (MOB) contractors and construction management (CM) firms for 2022, as reported in Building Design+Construction's 2022 Giants 400 Report. 

Giants 400 | Oct 6, 2022

Top 50 Medical Office Building Engineering + EA Firms for 2022

Jacobs, Gresham Smith, KPFF Consulting Engineers, and IMEG Corp. head the ranking of the nation's largest medical office building (MOB) engineering and engineering/architecture (EA) firms for 2022, as reported in Building Design+Construction's 2022 Giants 400 Report. 

Giants 400 | Oct 6, 2022

Top 100 Medical Office Building Architecture + AE Firms for 2022

CannonDesign, Perkins Eastman, HGA, and E4H Environments for Health Architecture top the ranking of the nation's largest medical office building (MOB) architecture and architecture/engineering (AE) firms for 2022, as reported in Building Design+Construction's 2022 Giants 400 Report. 

Giants 400 | Oct 6, 2022

Top 60 Outpatient Facility Contractors + CM Firms for 2022

Whiting-Turner Contracting Co., PCL Construction, Skanska USA, and Power Construction top the ranking of the nation's largest outpatient facility contractors and construction management (CM) firms for 2022, as reported in Building Design+Construction's 2022 Giants 400 Report. 

Giants 400 | Oct 6, 2022

Top 40 Outpatient Facility Engineering + EA Firms for 2022

Jacobs, IMEG Corp., Gresham Smith, and TLC Engineering Solutions head the ranking of the nation's largest outpatient facility engineering and engineering/architecture (EA) firms for 2022, as reported in Building Design+Construction's 2022 Giants 400 Report.

Giants 400 | Oct 6, 2022

Top 100 Outpatient Facility Architecture + AE Firms for 2022

Perkins and Will, HDR, CannonDesign, and Massa Multimedia Architecture top the ranking of the nation's largest outpatient facility architecture and architecture/engineering (AE) firms for 2022, as reported in Building Design+Construction's 2022 Giants 400 Report. 

Giants 400 | Oct 6, 2022

Top 90 Hospital Facility Contractors + CM Firms for 2022

Turner Construction, Brasfield & Gorrie, DPR Construction, and JE Dunn top the ranking of the nation's largest hospital facility contractors and construction management (CM) firms for 2022, as reported in Building Design+Construction's 2022 Giants 400 Report.

Giants 400 | Oct 6, 2022

Top 80 Hospital Facility Engineering + EA Firms for 2022

Jacobs, AECOM, WSP, and Gresham Smith head the ranking of the nation's largest hospital facility engineering and engineering/architecture (EA) firms for 2022, as reported in Building Design+Construction's 2022 Giants 400 Report. 

Giants 400 | Oct 6, 2022

Top 130 Hospital Facility Architecture + AE Firms for 2022

HDR, HKS, CannonDesign, and Stantec top the ranking of the nation's largest hospital facility architecture and architecture/engineering (AE) firms for 2022, as reported in Building Design+Construction's 2022 Giants 400 Report. 

Giants 400 | Oct 6, 2022

Top 115 Healthcare Sector Contractors + CM Firms for 2022

Turner Construction, Brasfield & Gorrie, DPR Construction, and JE Dunn Construction top the ranking of the nation's largest healthcare sector contractors and construction management (CM) firms for 2022, as reported in Building Design+Construction's 2022 Giants 400 Report. Note: This ranking factors all healthcare sector work, including hospitals, outpatient facilities, and medical office buildings. 

boombox1 - default
boombox2 -
native1 -

More In Category




Giants 400

Top 60 Outpatient Facility Contractors + CM Firms for 2022

Whiting-Turner Contracting Co., PCL Construction, Skanska USA, and Power Construction top the ranking of the nation's largest outpatient facility contractors and construction management (CM) firms for 2022, as reported in Building Design+Construction's 2022 Giants 400 Report. 

halfpage1 -

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021

 



Magazine Subscription
Subscribe

Get our Newsletters

Each day, our editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Subscribe

Follow BD+C: