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Trends in Building Material Industry

The building materials industry is one of the most fragmented and least digitized industries. However, understanding the trends that shape this sector can offer valuable insights for construction industry veterans and newbies alike.

Despite some signs of price stabilization, material shortages persist. Consequently, it is vital for contractors to lock prices early and seek alternatives for their projects.

Digital Transformation

In the building material industry, digital transformation can increase content accessibility, improve customer experience, and optimize supply chain processes. Moreover, it can enhance business agility, and improve ROI by decreasing the risk of downtime and waste. These digital technologies can also improve safety by providing access to information and data. Moreover, they can reduce the risk of operational failure and accidents by monitoring equipment and providing alerts.

Digital technologies in construction help to minimize carbon emissions and resource consumption. These technologies also support sustainability initiatives by reducing waste and increasing energy efficiency. For instance, German startup ecoLocked uses biochar to create concrete admixtures that allow the construction of carbon-negative buildings. This reduces embodied carbon in the structure and decreases demand for clinker cement, significantly lowering CO2 emissions.

During the COVID-19 pandemic, construction projects were delayed and building material supplies were in short supply worldwide. Construction companies experienced delays in cash flow, breaks in supply chains, and shifts in resources allocation. However, the use of tracking and ordering systems helped builders to manage project schedules and track inventory more accurately.

Many building materials businesses are turning to digital technology to make their operations more efficient and competitive. They are implementing business intelligence and financial reporting tools to streamline operations and optimize their inventory management. Moreover, they are using chatbots and artificial intelligence to provide a more personalized customer experience. This is helping to boost sales and improve profitability.

Modular Construction

Modular construction consists of prefabricated sections or modules that are constructed off-site, usually in a factory. The completed modules are transported to the building site and assembled. This process allows for much faster construction than traditional methods and can be used to build either permanent or temporary facilities.

While the modular construction market was impacted by COVID-19, it is expected to recover in 2022 and register robust growth. The market is divided into residential and commercial buildings based on the type of structure. Among these, the commercial segment is leading the market due to growing demand in healthcare and affordable housing.

Modern modular designs offer a host of eco-focused features, including dimmable LED lighting, solar water heaters, occupancy sensors and batteries for energy storage. Innovative companies like Plant Prefab also focus on building healthier spaces for humans and the planet by using materials without volatile organic compounds (VOCs) and natural airflow technology.

Another advantage of modular construction is its potential to reduce overall project costs by accelerating delivery and installation times. In addition, constructing modules off-site reduces the need for on-site labor and enables workers to work in more comfortable conditions. Moreover, modular construction can save up to 20% in total life-cycle costs through energy and maintenance savings. However, implementing this strategy requires careful planning and expertise. Construction firms that are not prepared for the shift to modular construction will be at a disadvantage.

Sustainable Building Materials

The materials used in building construction have a significant impact on the environment, from the resources required to create them to the energy used for transport and installation. Using sustainable materials can minimize these environmental impacts. They are also often more cost-effective in the long term, as they require less maintenance and have longer lifespans than traditional materials.

Innovative lightweight materials like composites and aerated concrete can reduce both construction time and costs. They can also help meet the weight restrictions imposed by urban planning regulations. Lightweighting also helps lower the carbon footprint of buildings, as it reduces transportation and production energy requirements.

Another sustainable alternative to heavy building materials is wood. New technologies such as cross-laminated timber (CLT) allow for the creation of skyscrapers using wood beams that are as strong as steel but require less energy to manufacture. CLT is also more environmentally friendly, as it eliminates the need for harvesting old-growth forests and supports sustainable forestry practices.

Other green options for building construction include recycling, reusing existing materials and minimizing material consumption. Some builders use recycled materials in their projects, such as reclaimed wood or bamboo. Others build Earthship homes, which use recycled tires filled with sand as insulation. Other builders are experimenting with plastic lumber and other nontoxic alternatives to traditional wood. For example, startups such as Newspaper Wood are working to turn paper waste into a strong building material.

Offsite Construction

While onsite construction may still be the best option for some projects, the industry is increasingly turning to offsite methods. Rather than building structures from the ground up on site, manufacturers can fabricate different components offsite and assemble them onsite, saving time and money. Offsite production can also deliver greater quality, reduce risks and contribute to a safer working environment.

One example of offsite construction is the Oresund Bridge-tunnel hybrid that spans the narrow Oresund strait between Denmark and Sweden. The designers of the project chose a tunnel instead of a bridge because a full-length bridge would have created a risk of airplane collisions with nearby Copenhagen Airport. The tunnel, on the other hand, kept airspace clear and shortened the project duration by two years.

Other nonresidential segments that benefit from offsite construction include hospitals, office buildings and high-tech facilities. These projects are highly standardized, require strict specifications in terms of branding and safety, and are often time-constrained and labor-intensive. However, unique projects that demand geometric forms or more demanding sustainability requirements can’t be easily accommodated by offsite manufacturing.

In addition, many building codes are geared toward onsite practices and can get in the way of offsite construction utilization. Moreover, a lack of collaborative culture in the construction and design industries can hinder offsite implementation.