The recent observations from the construction sector reveal that the industry will be resuming to the same activity level that it enjoyed prior to the pandemic-related shutdown.
The estimates obtained from Building and Construction Authority show that the contracts of around $27 to $32 million may be awarded this year and this turns out to be the same as that of the year 2019.
Furthermore, projections show that demand from 2023 to 2026 may also rise up to $25 – $36 billion on annual basis.
Tan Kiat How, the National Development Minister at the state level recently revealed that the backlog for work and the construction demands is likely to experience a steady rise now and it may affect the economy to great extent. Observations also show fast recovery to the manpower demands as several foreign laborers have started returning to their work.
In comparison to the period when the travel restrictions, social distancing measures, and entry approvals were tightened, the previous month recorded a great inflow of foreign workers.
The professionals also noted that the progress payments in the construction sector for the work are also expected to hit the estimated rise of $29 to $32 billion in the current year; however, this estimate was only $26 billion in 2021.
Other than this, the public sector is expected to grow by 60% in comparison to the total construction demands recorded in the previous year.
All these estimates are supported by the public housing project pipeline, including projects that are under Home Improvement Programme. The list also includes various infrastructure works and healthcare developments in the market.
The private sector-based construction demands are further expected to reach the estimated rise of $11 to $13 billion in comparison to the year 2021.
Considering the latest cooling measures, the demand for residential buildings is expected to become moderate in the coming years due to cautious sentiments in the market. However, the demands for the commercial sector may increase further as attractions and hotels expect refurbishment for the revival of the tourism industry.
However, another concern presented by the director of the BCA group reveals that this upbeat in the construction sector may be volatile due to the risk of the Omnicron variant. Although the symptoms of this variant are reported to be mild, it may knock out several workers with the rising number of cases.
Other than this, experts have also expected some labor and material shortage issues along with supply chain disruptions. The resulting cost pressure may appear as the most pressing issue in this case.
The construction firms may appear the most alternative procurement approach for mitigating fluctuations in prices of raw materials. The companies are concerned about such changes while preparing their contracts for the next deals. In order to handle the various challenges in the industry, professionals need to take actionable steps to lead a sustainable future.
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