Construction.

Design, manufacturing and logistics: teething problems.

Frequent changes in project design can lead to delays and cost overruns. Traditional design processes may not integrate well with construction and logistics planning, leading to inefficiencies in the later stages of the project. Some construction companies still rely on outdated design tools and software. Complex global supply chains for materials and components disruptions, such as delays, shortages, or price fluctuations, can impact manufacturing schedules. Limited access to construction sites in urban areas or remote locations can hinder logistics and increase costs. Handling and disposing of construction waste can be a logistical challenge, especially in areas with strict environmental regulations.

Addressing these teething problems requires a combination of technology adoption, process optimisation, and effective project management. Construction companies that are proactive in tackling these challenges are more likely to deliver projects on time and within budget while maintaining high-quality standards.

Lead times, costs and carbon footprint.

While the demand for housing is high, access to a reliable supply chain that can meet the output and standards required from today’s building regulations and carbon-neutral goals presents a big challenge.

Collaborative planning, transparent communication, and a commitment to sustainable practices are essential for managing lead times, costs, and the carbon footprint effectively. As an MES provider, LYNQ is well-positioned and already collaborating with developers, architects, quantity surveyors and manufacturers to help meet these goals.

The scale of the housing shortfall.

As of late 2022, over 1.8 billion individuals did not have access to adequate housing. About 150 million people are in a state of permanent homelessness, enduring the harsh realities of life without a secure shelter. Adding to this is the fact that an average of 15 million individuals are forcibly evicted from their homes each year.

In the United States, the housing crisis remains an ongoing challenge, with a need for 6.5 million new homes to effectively address the issue. This number continues to grow, exacerbating the situation day by day. Similarly, in the United Kingdom, there is an urgent need for 4.3 million homes to alleviate the backlog of individuals residing in public housing. Even nations with seemingly robust economies have found themselves unable to adequately resolve the pressing housing shortfall crisis.

The shortfall is influenced by various factors such as geographical variation, population growth, economic factors, government policies, construction industry capacity (labour shortages, material costs, and construction timelines play a role), affordability, urbanisation, cultural and demographic factors, and market cycles.

The role of developers and competition for land.

One of the biggest hurdles for building homes quickly is land availability and planning consent. These factors present greater hurdles than labour and skills, material costs, or even money. Big construction projects are invasive, noisy and take months, which are not popular with the constituents of local authorities, despite the upside of the new homes.

Developers are key players in the construction industry, driving the development of residential, commercial, and industrial projects. Competition for land is intense, particularly in urban areas and desirable locations. Developers’ ability to secure and develop land profitably depends on factors like market conditions, regulatory compliance, and their capacity to manage costs effectively. These dynamics have a profound impact on urban development and the availability and affordability of housing and commercial spaces.