Construction Trends for 2019: Technology, Incentives, and Growth
With the dawn of a new year, it’s natural to take stock of the trends that will define the next 12 months. We may not be prognosticators by trade, but we do make it our business to keep an eye on the future so we can provide informed guidance to our customers.
So what does 2019 hold for the construction industry? We see more automation, greater rewards for efficiency, and continued promise for growth over the long term.
Smart buildings on the rise
It’s a safe bet that technological innovation will appear on just about every construction industry trends list for the foreseeable future. This year is no exception: Smart buildings promise to revolutionize where we work and live in 2019.
Smart buildings marry technology and infrastructure to automate everything from HVAC controls to lighting, security, and even fire and life safety. In industrial settings, the technology is extending into such areas as fully automated product picking systems.
Widespread adoption is not a question of if, but when, especially as the internet of things gains ground in everyday life. As such, we believe elements of smart buildings will emerge in force this coming year. Building owners who are contemplating an expansion or new construction would do well to take this into consideration. Planning for the right infrastructure now will allow for seamless integration as more and more building components are linked up.
More capital improvements through tax incentives
The Tax Cuts and Jobs Act of 2017 unleashed a wave of economic confidence that prompted many owners to expand or launch new construction projects. What many owners may not realize is that changes to state tax codes could also provide attractive incentives for making facilities updates in 2019.
For example, in Ohio, new tax laws are incentivizing investments in energy efficiency. Upgrading to energy-efficient lighting, HVAC systems, roofing, and more can have a tremendous benefit on the bottom line. It could also lead to enhanced productivity and improved employee recruitment and retention by creating more comfortable and better-lit spaces.
As states continue to review and update their tax laws, we expect that more opportunities to invest in energy-efficient improvements will surface. The key is to work with knowledgeable partners who can offer expert recommendations on the best return for the investment.
Long-term optimism for continued growth
To be sure, there are many challenges in today’s construction market that will persist into 2019. Labor will continue to be pinched, material costs will continue to rise, and questions about global economic stability will still loom.
Current conditions may give some owners pause about launching a construction project. But we are optimistic about the long-term outlook and believe business owners have reason to be, too. In particular, we predict the construction market in some sectors will cool in the next year, which should help bring costs into line.
In the meantime, there is plenty of ground that can be covered while conditions stabilize. Feasibility analyses can provide valuable, real-time insights into how interest rates, material and labor costs, and the state of the economy will impact financing and project budgets. In addition, planning, conceptualizing, design, and permitting can easily take six months to a year. Completing this work early will help ensure all the pieces are in place for when owners are ready to move forward.
Navigating a new year
Change, of course, is inevitable. Any predictions for the future are just that—predictions. That’s why it’s crucial to capitalize on emerging technologies, new incentives, and positive developments as they present themselves. At Miller-Valentine Group, we strive to stay ahead of the curve so we can steer our customers down the path that best suits their needs, goals, and priorities. It takes the guesswork out of what is coming next so our customers can invest in their next expansion or new construction project with confidence.
Are you ready to break ground on new growth in 2019? Contact us today at 800-684-7687 to get started on a plan that will support your future direction, or e-mail Chris Knueven, President, at [email protected].