The first half of 2022 has come and gone. But as we look forward to the rest of the year, experts expect many of the past and current struggles will continue to linger.
Last year was a year of playing catch-up after an unprecedented year that was 2020. To make up for delayed projects, Kentucky construction companies’ calendars were filled in 2021 and that continues to be true in 2022.
At first, this initial influx of projects supported the construction industry recovery. But we soon faced supply chain issues that disrupted every phase. With fewer supplies, material costs skyrocketed, leading to even greater issues.
The good news is that experts say the supply chain issues are on their way to self-correcting, but the ongoing labor shortage is expected to get worse before it gets better. We still are working on creating a new talent base to replace Gen X, who retired in record numbers during the pandemic and will continue to as they reach retirement age.
Construction is expected to continue to surge throughout this second half of the year. Kentucky construction companies must be prepared for the future in several ways:
We must be resilient.
As we continue to face supply chain disruptions and financial instability, each company must be nimble enough to work through the unexpected with a strong, unified team as a foundation.
We must inspire.
We still have a way to go to fill the labor gap, especially if we are to combat the aging workforce. To achieve the growth we need, Kentucky construction companies should focus on attracting and retaining talent.
We must prepare to innovate.
If one thing’s for certain, additional uncertainties are sure to arise in the back-half of 2022. To keep moving in the right direction this year, we need to be open to adapting to emerging technologies and solutions, rather than avoiding them.
If our past is any indication of our future, we can have confidence.
Kentucky continues to grow, and we are considered one of the best places to invest in the nation. In addition, the Northern Kentucky Tribune reported “the highest-ever monthly General Fund receipts of $1.84 billion. That is up 34.9% over last April’s collections, bringing Kentucky’s year-to-date growth rate to 16.4%.”
And, if our expertise can do one thing, it can make powerful progress.
Experts foresee compound annual growth over the next few years. Infrastructure categories, including highway and bridge, transportation facilities, water and sewer projects, have the best outlook of all, thanks to the Infrastructure Investment and Jobs Act (IIJA).
Even with hope, we can’t predict with absolute certainty where 2022 will take us. After all, no one could have imagined the reality that was 2020 or 2021.
Let’s work together to make the rest of 2022 the best it can be. Together, our industry’s innovation, skilled team members and resilience will continue to move us forward.