Despite a predicted decline in non-residential construction spending for 2021, real-time bidding data from BuildingConnected indicates that short-term relief is on the horizon as delayed or rescheduled projects begin to resume.
SAN FRANCISCO, March 16, 2021 /PRNewswire/ — Autodesk, Inc. (NASDAQ: ADSK) has released its “Construction Outlook 2021: Risks & Opportunities†report, offering a deep dive into key industry trends across five critical areas: growth, health and safety, labor, supply chain, and design. As the ongoing impacts of the global pandemic and economic uncertainty continue to unfold, aggregated and anonymized data from BuildingConnected—part of Autodesk Construction Cloud—reveals that real-time bidding activity has not only surpassed pre-pandemic levels but also reached an all-time high in January 2021.
Over one million construction professionals—including owners, general contractors, construction managers, and subcontractors—use BuildingConnected to submit or request bids. The platform processes over five million bid invitations each month, making it a key indicator of market activity.
The report highlights several key insights based on BuildingConnected’s bidding data as of March 1, 2021:
- Bidding activity initially rose at the start of 2020 but dropped by about 34% within 60 days after March 19, when the first U.S. stay-at-home orders were issued.
- Activity gradually recovered between March and October, peaking in November 2020.
- Compared to a three-month average before the pandemic, bidding volume was up 15% in November and 36% in January 2021, with January marking a record high for the platform.
- The rate of new project additions on the platform has remained steady, suggesting that increased bidding is likely due to resuming projects rather than entirely new ones.
“While we’re not out of the woods yet, the real-time bidding data from BuildingConnected shows that delayed or rescheduled projects are starting to come back online,†said Ed Zarenski, a construction economist. “Higher bidding activity combined with consistent project volume signals that the industry is getting back to work—and doing so quickly.â€
2021 Construction Outlook Report Offers Key Insights on Industry Trends
By combining internal product data, external sources, and expert analysis, the Construction Outlook report equips construction professionals with essential information and actionable strategies to remain resilient during the recovery phase. Additional findings include:
- New starts are expected to rise in 2021, but the starting backlog for 2022 may decline. While new starts are forecasted to increase by 6%, with a 6% rise in nonresidential projects and a 10% increase in non-building infrastructure, the starting backlog for 2022 is projected to drop by 5%.
- Nonresidential construction spending will decrease in 2021, but healthcare and commercial retail sectors are expected to rebound in 2022. By October 2021, nonresidential building spending is projected to fall 20% compared to February 2020, with quarterly declines of 2–3%. Total nonresidential spending is expected to reach $411 billion in 2021. In 2022, healthcare and commercial/retail sectors are anticipated to grow by 3% and 6%, respectively.
- Transportation, air, and rail sectors have been less affected. Transportation spending is forecasted to grow by 10% in 2021, driven by strong backlog from major projects over the past few years. Long-term positive impacts could also stem from the new administration's focus on transportation resilience.
- Other nonbuilding infrastructure segments, such as sewer and water (up 4%) and highways and bridges (up 2%), are also expected to see increased spending in 2021.
- Total public spending in 2021 is projected to reach $384 billion, an 8.5% increase from 2020. Growth in the residential sector is a major driver, and starting backlog growth is expected to pick up in 2022, particularly in commercial, healthcare, and transportation sectors.
Jim Lynch, senior vice president and general manager of Autodesk Construction Solutions, noted: “In the early days of the pandemic, the construction industry turned to technology to adapt, facilitating social distancing, implementing safety protocols, and shifting operations to remote settings. Now, as the industry begins to recover and teams return to jobsites, adopting digital tools, streamlining workflows, and upskilling employees is more important than ever. For example, despite a 40% spike in bidding volume, nearly 80% of teams using BuildingConnected can still deliver bids within the standard seven-day timeframe. Without the right technology, maintaining productivity amid this surge would be impossible.â€
Recommendations for Enhancing Preconstruction Processes and Managing Risk
The report also provides practical recommendations for companies navigating today’s dynamic environment:
- Monitor the impact of project restarts: As the industry transitions from low activity to growth, default rates tend to rise. Specialty contractors should be strategic in selecting projects, while owners and general contractors must carefully evaluate the capacity of their trade partners.
- Conduct frequent trade partner qualifications: With the current volatility, traditional annual qualification cycles may no longer suffice. It’s advisable to qualify partners twice a year.
- Improve design review coordination: Reducing change orders and RFIs is essential to meet tight deadlines. Research from Autodesk shows that 70% of RFIs can be resolved through thorough preconstruction design reviews. Projects that address high-priority RFIs quickly often see better profit margins. A stronger design review process can help mitigate risks during preconstruction.
Zac Hays, head of preconstruction at Autodesk Construction Solutions, added: “As projects come back online, deadlines will become tighter, and every dollar will be scrutinized. The preconstruction phase will play a crucial role in managing risk, generating valuable data, and avoiding costly rework. This will help companies navigate the current uncertainty with greater precision.â€
The report includes case studies from Autodesk customers like Chandos, Helm Mechanical, John Moriarty & Associates, EBC, Inc., and CRB. To access the full report, click here.
About Autodesk
Autodesk creates software that empowers people to bring ideas to life. Whether you’ve driven a high-performance car, admired a skyscraper, used a smartphone, or watched a blockbuster film, there’s a good chance you’ve benefited from the work of millions of Autodesk customers. Autodesk gives you the power to make anything. For more information, visit autodesk.com or follow us on @autodesk.
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We may discuss future development plans for our products and services. These statements are not promises or guarantees of future delivery, but reflect our current intentions, which may change. Purchasing decisions should not be based solely on these statements. The Company assumes no obligation to update forward-looking statements.
Autodesk, the Autodesk logo, Autodesk Construction Cloud, and BuildingConnected are registered trademarks or trademarks of Autodesk, Inc., and/or its subsidiaries and affiliates in the U.S. and other countries. All other brand names, product names, or trademarks belong to their respective owners. Autodesk reserves the right to change product offerings, specifications, and pricing without notice and is not responsible for typographical or graphical errors in this document.
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