Construction Insurance Company: Prepare your Construction Business to Combat the Challenges and Reap the Benefits of the Changes & Trends Expected to Hit the Construction Industry in 2019
2018 is drawing to an end, and the New Year will bring about various changes within the construction industry. While many of these changes will work in the favor of construction firms, many might leave them behind in the challenging race of competition and chaos.
Let’s take a look at the legal, economic and technological trends expected to change the construction industry in 2019:
Value-Added Taxation Reversed
The recent changes to the VAT dictate that the supplies of reduced or even standard expense building services amongst VAT registered companies within the supply chain cannot be invoiced in the standard manner. In 2019, the main contractor or customer will invoice the VAT for the services of a sub-contractor or supplier.
The main contractor will be held accountable for the VAT according to the net value stated in the invoice of the supplier. This will affect all private construction companies, subcontractors, landlords and even retailers and repair workers.
Material Cost set to Soar
Material costs have been rising throughout 2018, but in 2019, they are expected to increase by a whopping 9%, at the rate of 1% increase each month. The greatest increases have been noted in iron, steel, lumber and other steel mill products. Unless the supply reduces and the cost of supply increases, material costs are not expected to be reduced anytime soon. Needless to say, this will emerge as a grave challenge for construction firms.
Technology Innovations & Integration
Technological advancements have been adopted by the construction industry at a very slow and hesitant pace, and many small-scale firms have not considered equipping themselves with basic technological and project management solutions. However, this is expected to change in 2019 because technology advancements and integration is a huge trend that seeks to innovate various construction processes and project management solutions.
Technological innovations that allow flexible project management, bundling scheduling, and tools such as drones and aerial photography, can provide great utility and efficiency to construction firms, along with increasing on-the-job site safety.
The Emergence of Green Technology
The construction industry is all set to welcome the advent of green technologies, and in 2019, the most innovative feature of buildings and housing plans will be the incorporation of green technology within the construction plan. Basically, it is the use of environmentally healthy and resource efficient tools and equipment to improve utility, durability and reduce pollution.
Alongside incorporating green technology methods within the phases of design, planning construction, demolition, maintenance and repairs, green technological research has also quickened its pace. The market is stunned by the groundbreaking invention of carbon scrubbing building bricks constructed with recycled cigarette butts. Various other inventions include asphalts that heat on their own, and air conditioners that work with thermal energy.