Industry News
January 13, 2023

What to expect in 2023

As owners and general contractors prepare and plan for the coming construction season, it's a good time to look back at 2022. The consensus going into 2022 was that it would be a good year for construction. And it was. Based on preliminary numbers, the construction industry grew by 6.5%. The questions now: What led to industry growth, and what can we expect in 2023?

Looking back at 2022

The big news here at Avvir was that the company joined Hexagon’s portfolio. It's just one example of market consolidation that happened throughout the industry.  


This was a natural fit. There’s a synergy between Avvir and others in the Hexagon portfolio. Our specialty is reality analysis - connecting the data between reality capture and BIM to give owners and general contractors needed information. This fits perfectly with what Hexagon, a global leader in digital reality solutions and its portfolio, provides its clients.


The news on the technology side has been noteworthy and impactful. Consider that 2022 saw a continued push toward digitalization. Digitalization is increasingly being married to what's done on the measurement/survey or positional side and visualization software. This adds greater precision.


Similarly, there have been technological innovations in both software and hardware. In terms of hardware innovations, devices with higher quality and more accurate image reality capture are being rapidly developed. Among the new products that came to market in 2022 is Leica’s BLK 360.


In terms of software, artificial intelligence continues to advance. It’s no longer about just looking at images. With the software improvements, AI can determine what's inside those images or within 3d laser scanning data. Teams can turn what was considered passive documentation into more active documentation and gain greater insights.


These developments empower owners and general contractors to reduce rework and discover issues earlier in the process. The precision and exactitude make rectifying construction problems simpler and less costly.

Predictions and thoughts for the construction industry in 2023

There’s a great deal of uncertainty about the overall US economy. Many predict a slowdown or a slight recession in the first half of 2023, with the economy returning to growth in the second half of the year. JP Morgan projects the US economy to grow at a meager 1% in 2023 and the global economy at a slightly better 1.6%.


Predictions for the construction industry are brighter. The November 2022 Dodge Momentum Index (DMI), a benchmark which measures nonresidential building planning, increased by 3.8%. The index normally leads construction spending by 12 months. The DMI was even higher in October at 9.6%. At the time, Dodge Construction Network’s senior economist said, “The sustained upward trajectory in the Momentum Index shows optimism from owners and developers that projects will continue to move forward, even with rising concerns of an economic recession.”


One of the keys to construction growth in 2023 will be continued tech adoption, which increases productivity. The key to getting the notoriously slow construction industry to adapt technology at a deeper level is a clear understanding of need, bringing solutions that fill the need and simplifying things.


Expect tech integration in 2023 as one solution to the troubling labor shortages which could hinder the industry.  A recent AGC survey found that 93% of construction firms have open positions, despite 86% of firms increasing pay in the past year. While the industry has redoubled its efforts to attract and retain employees, 66% of firms delayed projects due to labor shortages. 


Expect further consolidation and integration in 2023. This will allow different disciplines to be more connected and lead to a more complete and clearer picture for the end customer. Part of this is the flow of data. Consolidation and integration will help to get data out of the silo and into different platforms more seamlessly. Companies are realizing they can work together to feed even more valuable data to all the different stakeholders in the construction industry.


More integration is a recognition that companies realize they can work together to feed even more valuable data to all the different stakeholders in the construction industry.

Another trend - data will be processed faster across reality analysis, reality capture from laser scans with 360 photos. Expect to see more about detections and more insights into reality capture. And keep an eye on specific applications of artificial intelligence, on specialized construction methodologies and construction techniques.


There are some potential bumps in the road, but 2023 should be a year of growth in the construction industry. The right software and tools can help smaller, nimble teams continue to grow and take on projects, despite the overall economic issues and workforce challenges.

With Avvir’s Reality Analysis platform, companies can prevent overages and extra work. Avvir Inspect catches critical quality issues before they become a problem helping companies stay on budget, on schedule, and maximize productivity. That’s invaluable every year.

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