Our team at Advantage Drafting is consistently looking to the future to find out what’s next for our industry. Let’s explore five construction industry trends that could impact the commercial glazing industry this coming year.
(-) The Construction Industry May Hit a Downturn
We are already beginning to see early signs of a downturn in the U.S. economy due to particular economic concerns, such as rising interest rates, inflation, and uncertainty in the geopolitical sphere, especially as the Ukraine conflict continues.
According to a few leading building sector economists, the 2023 construction economy may deal with the repercussions of the U.S. economic decline.
The residential sector was one of the most prominent in 2020 and 2021, though many expect it to meet the same decline moving into 2023.
Richard Branch, the chief economist for the Dodge Construction Network, notes that the construction downturn will be relatively mild compared to past cycles.
(+) Hotel and Healthcare Construction Projects Will Increase
There are slightly more optimistic predictions for non-residential spending, particularly in the hotel and healthcare sectors.
ConstructConnect predicts a motivating 3.8% growth in 2023. However, chief economist, Richard Branch, notes here that the occupancy rate for planes and hotels was already up by 76% in the third quarter of 2022, and the industry as a whole will likely squeeze out mild gains compared to other sectors.
It’s no surprise that the healthcare sector saw a significant uptick in spending over the past few years. In 2021 alone, there was a 40.3% spending increase, topped off by a 7.7% increase in 2022. Moreover, economists predict the sector will see an additional 3.2% increase in 2023 and continue until 2026.
If we look back, institutional building construction didn’t bottom out during the Great Recession until 2011. Many economists believe the same thing is happening today. With major underinvestments in inpatient facilities over the last five years, we are starting to see a trend reversal, pushing the need for healthcare construction significantly.
(+/-) The New Year Will Require Innovation
If your team is equipped to stay competitive, the new year may look bright. However, if you’ve found that you’re falling behind industry trends, the exponential changes could be a disadvantage.
There are many examples of new innovations and technology that will be necessary to keep up with ever-growing demands.
Integrated photovoltaics is a good example of a profitable glazing solution that will likely become more popular as energy management takes priority. Referencing the Solar Energy Industries Association, in glazing applications – this involves ultra-thin solar cells that may be used to create semi-transparent surfaces. The surfaces allow daylight to penetrate while simultaneously generating electricity. These are often used to create PV skylights or greenhouses.
Beyond integrated photovoltaics, many companies are noticing an increase in laminated, asymmetrical, and oversized insulating glass, driving the anisotropy quality control characteristic. Overall, the size of glass panes will continue to increase, and new technologies, such as vacuum-insulated glass, will become more prevalent. We may also see a push to drive post-temperable coding energy performance.
As the industry continues to shift toward larger independent fabricators with a more localized focus, these companies will have to keep up with major advancements as they emerge.
(+/-) Inflated Material Costs Will Even Out In Certain Sectors
The term “inflation” became synonymous with 2022. Supply chain issues and rising energy prices throughout the recent pandemic gave way to price increases in the construction industry. The commercial glazing industry has been awash with supply shortages over the past few years, as well as higher prices for machinery, consultation fees, and raw materials.
Ken Simonson, the chief economist for the Associated General Contractors of America, notes that material costs should start balancing out in 2023. However, this is only for certain materials, such as aluminum, steel, and lumber.
Compared to other material groups in 2022, glass prices have never fully settled back to pre-pandemic levels. With a constant ebb and flow of energy surcharges, many IGU suppliers had to pass prices along to their suppliers or take the hit.
(+) The Net-Zero Energy Revolution Will Provide New Growth Opportunities
It is increasingly evident that we’re moving toward a net-zero energy revolution, and as new studies show the possibility of net-zero construction, major opportunities in the various construction sectors are becoming available.
Alex Carrick, chief economist for ConstructConnect, predicts more eco-friendly spending initiatives, a rapid increase in NZE-related mega projects, and a greater number of renewables.
Large-scale and independent glazing companies will have to consider sustainable systems, utilizing elements such as integrated photovoltaic curtain walls and electrochromic view glass to convert otherwise inefficient buildings into examples of net-zero construction.
We see a clear interest in the reuse of glass, creating new conversations about our circular economy that will hopefully provide better infrastructure for the recycling of industrial glass.
While many of these green-friendly techniques are still in their infancy, 2023 will show us what is possible through the application of innovative technologies.
Final Thoughts
As 2023 opens its doors, new possibilities will come to light. Here at Advantage Drafting, we’re looking at the future of the glazing industry in a positive way.
We put emphasis on the importance of innovation and exceeding our customers’ expectations, and we’re more than ready to overcome any short-term hurdles that may come our way.
With these critical predictions in mind, you can determine what you need to shift your production process and keep your glazing company flourishing. Let’s make 2023 a succes, request a free quote today!
