Construction Industry – These are the Challenges for 2023
New year, new challenges. The construction industry is not only undergoing significant change, but is also facing various challenges: The war situation in Ukraine is leading to enormous price increases in oil, gas, and material procurement; Corona continues to disrupt supply chains for transporting raw materials; the necessity for digitalization in construction is increasingly coming into focus; and sustainability criteria ("Environmental, Social and Governance", or ESG) are actively calling for conscious action. One thing is certain: The construction industry must become even greener in 2023. Let's look at the trends for 2023 and show how construction companies can already act in line with these trends and how they can master the current challenges.
Sustainable Building for 2030 Climate Goals
The fact that the construction industry is increasingly opening up to sustainability and sustainable building is good news. However, there is still much to be done to achieve the climate goals. Construction processes need to be rethought, material procurement optimized, and supply chains made more emission-free. The solar industry is expected to experience significant growth – Germany achieved around 60 GW of PV systems in 2021. Habeck's Easter package stipulates that Germany must expand PV capacity to 215 GW by 2030. For this, areas need to be created and approval processes significantly shortened. This requires cooperation from all stakeholders so these measures can be implemented profitably.
Sustainability and Transparent Processes at klarx
For the construction machinery in our logistics centers, we not only handle the transports ourselves; the machines are also equipped with intelligent telemetry units that enable a transparent rental process: Information about the exact machine usage and our climate-neutral diesel consumption is stored and evaluated – for sustainable and cost-saving deployment on the construction site. Reliable delivery can be tracked using GPS tracking, ensuring planned construction projects are secured.
Read more: klarx and Sustainability
More Sustainability in the Construction Industry Thanks to ESG Criteria
By 2050, Europe should be climate-neutral. The construction industry has considerable catching up to do in this regard. Therefore, in 2022 there is even more focus on the so-called ESG criteria, which can be integrated into all construction phases. ESG stands for Environmental, Social and Governance and encompasses sustainability-related provisions that should provide guidance toward greater environmental awareness.
The ESG Criteria
But what do these criteria mean for the construction industry? Non-compliance has consequences not only for the environment but also for the company itself: More and more investors are paying attention to companies' sustainability strategies – so failing to comply in the future could also result in investors no longer being attracted and thus no financial support for the company. Moreover: Those who embrace "greener building" can ultimately generate more revenue: Renting construction machinery instead of buying, using natural raw materials, or recyclable materials are just a few points that can contribute.
Implementing Sustainability in Your Company – Here's How!
For the reasons mentioned above, it is important to take sustainability seriously and give it space. With simple measures and with ESG in mind, you can make your company more sustainable today:
- Offset CO2 emissions via a partner (e.g. climate partner)
- Sustainable employer branding (e.g. GOTS-certified clothing)
- Resource-conscious working (either ventilating or heating, waste separation, …)
- Digital rather than analog structures (goodbye paperwork!)
- Investing in climate projects
- Sustainable business practices on the construction site (starting with digital planning through to efficient operation of construction machinery on site)
Enormous Price Increases and Supply Shortages
The outbreak of war in Ukraine at the beginning of 2022 brings various changes to the construction industry. The generally rising inflation rate leads to price increases in material procurement and higher logistics costs due to exploding oil and gas prices. Uncertainties on a global economic level also impact financial markets, meaning capital procurement for construction projects is significantly affected. Building permits for housing fell by 9.4% in August 2022 compared to the same month the previous year (source), with many construction projects being cancelled or postponed.
The forecasts for 2023 currently look concerning. On December 6, 2022, the Central Association of German Construction Industry (ZDB) announced its assessments: Revenue in main construction is expected to decline by 7%.
Corona in the Construction Industry – Familiar Challenges
Even in 2023, supply shortages for raw materials and building materials resulting from the Corona crisis at the beginning of 2020 are expected to persist. Additionally, the first lockdown and short-time work are still having repercussions. Due to the previously mentioned consequences of the war in Ukraine, supply shortages and difficulties in providing materials continue. An improvement is not currently in sight.
Software Solutions in the Construction Industry
2023 is (once again) the year of advancing digitalization in the construction industry. Digital solutions not only save enormous amounts of time but also support the aspect of sustainability. Transparent and efficient processes lead to shorter communication channels, resources can be deployed elsewhere, and the construction process can ultimately be accelerated.
More and more companies are recognizing this major advantage and reorganizing their own construction management: The digital procurement of rental machinery, documentation, and billing pave the way to a paperless construction site. Communication via telephone is increasingly being replaced by apps or short messages. Software solutions primarily bring one thing: cost-effective, faster, and easier processing for all construction processes.
Digital Rental Experience with klarx
From inquiry through delivery to release and pickup: Using our digital solutions, we guarantee the perfect rental experience and the easiest way to rent construction machinery. Our App and our klarxMANAGER enable you to save enormous amounts of time and ensure the simplest communication – from inquiry to pickup. Start your digital rental experience with klarx today and rent a construction machine.
Go Digital with klarx
In summary, it can be said that the overall economic situation has developed negatively since the beginning of 2022. The energy crisis, inflation, and the associated supply shortages and high price increases are presenting the construction industry with new challenges. On the other hand, progress in digitalization and sustainability measures are coming into focus. Whoever does not participate in terms of sustainability, digitalization, or AI in the construction industry will definitely come up short.
Front and center are software solutions like the klarxMANAGER, which we presented at bauma 2022. Via the klarxMANAGER, rental of construction machinery can be processed in just a few seconds, with full transparency and easy operation.
If you want to rely on dependable machinery rental, time-saving processes, and digital solutions, you're in good hands with klarx. Use our software solution and book directly from the construction site, benefit from digital handover protocols and logistics notifications. If you would like to learn more about this,
