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The construction industry forecasts a higher demand for resiliency and sustainable materials. The JLL 2024 Midyear Construction Update and Forecast report identified the opportunity for developers, architects and designers to construct stronger buildings, as their findings predict an escalation of global geopolitical risk factors. In addition, their report finds that low carbon concrete, in addition to other sustainable materials will continue to be sought after, while materials like metal and concrete will see less demand presently and in years to come. In conversation with Andrew Volz, Research Manager, Project and Development Services, JLL, Andrew discusses these report findings and his insights for where the construction industry is heading in the next few years. Read below to learn more about Andrew’s strategies for future-proofing your buildings:
One of the topics that I found interesting from the report was the increased need to future-proof infrastructure. How can stakeholders or organizations best design and construct resilient buildings?
Everyone is working towards futureproofing. They are looking towards doing better, making their buildings more resilient, and understanding the difficulties that are changing the built environment. Organizations and stakeholders can look to electrical goods when constructing resilient buildings. Electrical goods are in high competition in relation to this futureproofing because many are looking for sustainable materials and commitments to achieving their long-term environmental goals. In addition, building performance standards have changed drastically over the years as we look at the pressures of climate change on the regulatory side.
How will construction employment change within the next three to five years? What are the best ways that contractors can retain talent?
The construction industry faces a challenging future due to a combination of factors. Currently, hiring rates are at their peak, but long-term growth is expected to be minimal. This is largely because many experienced workers, especially in skilled trades like electricians and plumbers, are nearing retirement. This loss of expertise will likely result in a decrease in overall skills and knowledge. The best ways that contractors can retain talent are to offer higher wages and invest in training for future needs. Construction is a physically demanding role, which results in many retiring early. By introducing these trades early on in schools, this can open the door to more construction opportunities and careers.
Can you describe why the demand for "finished goods" remains high? How can MEP (mechanical, electrical and plumbing) goods keep up with the demand for data centers?
There’s incredibly high demand for electrical goods due in part due to the explosive data centers growth that continues to trend, both nationally and internationally. In addition, due to electrification ordinances, there is pressure to move away from natural gas for heating in residential too. There is also a demand for new types of heating and cooling systems that puts a lot of pressure on those kinds of critical components within electrical production and manufacturing facilities (that are over capacity in terms of demand). We’re under supplied with what we can make and how we can get that out at a consistent rate. We’re still seeing some transformers and switch gears within that order-ahead-by-a-year-or-more range. Everyone in the emerging sectors of construction is doing something to future-proof their environment, and the competition for electricians in high development areas is fierce.
One of the findings from the report determined that there is a high demand for new materials within categories, such as low carbon concrete. Can you explain why this supply is in such high demand?
We’re seeing more sustainable materials because of this collective need for more sustainable buildings. There is a recognition that people have about the incredible impact that construction has on the environment. Concrete, for instance, has a high impact on our carbon footprint due to a variety of factors, mainly because of its cement content. Cement production goes through a process of calcination, where you’re heating limestone up to a very high temperature which in turn emits a large amount of carbon. In fact, cement is somewhere around eight to ten percent of all carbon emissions globally, which is incredible. As a result of this impact, many are exploring different routes through the use of low carbon concrete, which uses a more environmentally friendly production of cement or by implementing sequestration of carbon within the concrete itself. More and more, we are analyzing the different additives and materials that can lower the minimum amount of embodied carbon in construction.
What are the biggest challenges to producing this low carbon concrete material?
There are a lot of different approaches to producing this material, and the demand can be really high, but being able to transport this material across the globe can prove to be a challenge. With concrete, it’s bulky and difficult to ship. As a result, many will end up using whatever materials are local or convenient because it is cheaper as well. Looking ahead, we need a wider distribution of facilities to produce this low carbon concrete material and assess the right path for each place and project. While we’re not where we need to be yet, the demand keeps getting higher and we are making better steps towards solving these issues and creating bigger impacts in reducing carbon emissions.
What is the most surprising tidbit from this report or through your research in construction materials?
The amount of concrete and cement we use is astonishing. According to a report by National Geographic, “the mass of everything people have built and made, from concrete pavements and glass-and-metal skyscrapers to plastic bottles, clothes and computers, is now roughly equal to the mass of living things on Earth.” And that report was in 2020. Their report also forecasts that if current trends continue, these manufactured materials will weigh more than twice as much as all life on Earth by 2040. This data only encourages myself and my team to explore this research more and support our climate startups through JLL Foundation like Minus Materials. At JLL we will be doing a campaign that focuses on building awareness, which ties into the 200-year anniversary of Portland Cement this year.
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