More than a decade after the Great Recession brought the construction business to a standstill, the industry has rebounded. Oregon’s construction industry has expanded by 10% in the past year, employs over 100,000 people, and remains the fastest-growing sector in the state, according to The Oregonian.
Although some factors are hindering the industry from reaching its full potential, it is on the right track. As the state enjoys good growth levels in construction, let’s look at what has been boosting growth in the past few years. Here are elements influencing the industry’s rise.
Technology
Innovation and technical progress are major factors influencing the development of the construction industry. Technologies are not only reshaping the industry but also driving growth. Construction firms are now adopting the latest machinery, innovative tools, modifications, and software. This has boosted productivity, enhanced collaboration, improved safety, and allowed contractors to handle more complex projects.
As construction is redefined by technology, support industries like those that trade in machinery are also benefiting from the growth. Companies that deal replacement and maintenance equipment, especially parts like the cat 1r0750 fuel filter are now getting more business since firms now want their machinery to run more efficiently and effectively.
New Trends
Large scale construction of office space in Oregon has now shifted to the suburbs. Investors now prefer to build outside central business districts due to the availability of extra space and the ability to expand when required. The Silicon Forest in Oregon is an industrial corridor where there is an overwhelming demand for quality office space.
Established and startup tech companies are actively moving into the area. This trend has given a construction industry a boost as they have to respond to the growing demand and ramp up production. There are also other numerous projects underway across the state ranging from apartments, hotels, clinics to self-storage buildings.
Labour
Demographics highly influence the labor force participation rate. Although demand for construction projects is high, construction companies are unable to respond aggressively because of the lack of skilled labor. Luckily, Oregon construction companies and the State government have made some moves that have offered some relief.
They have set up workforce development initiatives that are designed to help construction workers to meet the industry’s demands, according to The Oregon Department of Transportation (ODT). They have incorporated training, apprenticeship, and instruction programs to develop the skills of workers. This has helped to increase the number of trained construction personnel, reverse falling trends, and boost growth in the industry.
Demand from Population
As Oregon’s population grows and migration into the state increases, new construction has increased, albeit at a relatively sluggish level compared to the past years. Construction firms have been trying to strike a balance between supply and demand.
Builders are also slowly but steadily trying to catch up with years of pent-up demand following the huge slump that came after the Great Recession. This move has been beneficial to the entire construction industry, and a further increase in population will be good news to construction businesses.
Infrastructure Projects
The construction industry is leading the way with high growth (Source: Pixabay)
Government development activities have kept the construction industry thriving. Highway upgrades, paving, and bridge replacements, are some of the works that are benefiting the industry, as noted by the Statesman Journal. Infrastructure projects that are in the pipeline, such as the high-speed rail system will further fuel growth in the industry.
Wrapping Up
The construction industry is leading the way with high growth. This is not only good for the state’s economy, but also to the industry’s workforce. Some of the main factors that have influenced its growth include advancements in technology, increase in population and new infrastructure projects.
By: Cascade Business News on August 16, 2019