The construction sector is on a rebound from the recession of 2008. A steadily improving economy has positive implications for the sector as the FMI predicts that total construction put-in-place will grow 7% this year, a trend that is likely to continue into the near future. With non-residential construction growing by 8.6% and the public sector growing by 9.6% but with a concern of decline, the main challenge the sector faces is the difficulty in finding adequately trained equipment operators for yellow gear. The lack of, can result in asset under-utilization and improper use, causing operational inefficiencies for businesses.
During the 2008 to 2009 recession, employment in construction fell 5.7%. In 2010, when the economy saw signs of improvement, employment in construction advanced by 4.9%. As the economy improves in 2014, we see the incorporation of 20,000 new jobs in construction in the month of August alone, 5500 being in nonresidential.
The rise in non-residential construction owes credit to ‘shale’, a natural gas that is found trapped within shale formations and serves as an emerging energy resource. In 2010, shale contributed to 20% of the US annual gas production with an expected increase to 46% by 2035.
The extraction of shale gas creates the need to build more access roads, site structures, storage ponds and support pipes in order to maintain and distribute this energy resource. Equipment for fracking rigs, pumps, pipes, and tanks will flourish the construction, transportation and rail industries. Furthermore, we can anticipate the use of shale in petrochemical and steel power plants, export terminals and eventually fueling stations for vehicles.
With the promise of growth in construction the sector faces growing concern in finding the right equipment operators, in order to reduce asset under utilization and improper equipment use. The increased need for asset optimization brings the need for telematics solutions, such as Sentinel FM, that provide a full location smart monitoring platform to track a full construction site including equipment, assets and workers. Useful data provided by telematics solutions will enable construction players to optimally utilize their hard-found equipment operators and expensive assets and vehicles; to be more profitable, enforce safe working environments, and be compliant with federal regulations.