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AEC 2022 Trends – Top 10 Challenges and Opportunities

AEC 2022 Trends – Top 10 Challenges and Opportunities

The AEC industry is currently going through an unprecedented transformation. 

In the last few years, essentially every market in the world has seen a significant change. Additionally, many macro changes to our markets that would have typically taken more than a decade to manifest have been expedited by the epidemic. 

The engineering, construction and design firms are and will be significantly impacted by these developments. Project plans are still being hindered by supply chain bottlenecks, labor & resource shortages, shifting regulatory constraints, and rising costs. 

Let’s examine the key trends for AEC organizations to keep in mind as they move forward while still adjusting and adapting to the new normal of 2022 and beyond. 

AEC Industry 2022 – What has Changed? 

The year 2020 marked a turning point for the AEC companies.  

The COVID-19 pandemic upended the global corporate environment and hastened the adoption of digital solutions and our capacity for remote work.  

Today, there is a tremendous demand for global infrastructure and construction services, which has led to tremendous development and new prospects.  

On the other hand, the global market is concurrently witnessing new heights of political and economic turbulence. Additionally, many macro changes to our markets that would have typically taken more than a decade to manifest have been expedited by the epidemic.  

Project plans are still being hindered by supply chain bottlenecks, labor & resource shortages, shifting regulatory constraints, and rising costs. 

Therefore, having a research-based awareness of how the industry trends are shifting and how your peers and competitors are adapting to the new industry dynamics is crucial for AEC firms looking to expand and keep a competitive edge over their rivals.  

Keep your Eyes Open and Your Feet Moving Forward. A wide range of opportunities and challenges accompany such profound change. 

Top 10 Key Challenges/Opportunities for The AEC Industry – 2022 & Beyond 

1. Unpredictability

AEC Industry Challenges-  Unpredictability

Needless to say, market volatility is the paramount concern of any business out there. 

More than ever, AEC companies must delve deeper into their customers and prospects. Only when a company fully comprehends its audience can you stand out as a business partner or employee.  

Understanding how your company differs from its competitors is necessary to confidently identify key differentiators. Companies need to speak with their customers, staff, and partners to learn what has differentiated them from the competition and what hasn’t. 

On the other hand, architecture, engineering, and construction (AEC) businesses are facing significant challenges as it aims to meet the rising demand for assets to be constructed, operated, built to a standard, and maintained more quickly, at a lower cost and risk. Most firms’ current non-integrated business systems and processes will simply not be enough if they want to compete in the future. 

Without a unique value proposition, firms will eventually find themselves in a difficult position. Businesses need to specialize and figure out how they uniquely add value to tasks and clients.  

Therefore, Technological & Collaborative solutions are growing as an essential requirement in the competitive AEC industry. 

2. Rising Costs

AEC Challenges- Rising Costs

Rising costs are a major concern for AEC organizations of all sizes. Budgets are being reviewed by AEC experts, who are also searching for ways to cut costs and limit price rises for clients. 

AEC executives are looking at technology and collaborative solutions that help save time, money, and energy to achieve corporate goals. You may lead your businesses into the next decade and beyond by concentrating on sustainable business practices. 

Working with an offshore workforce, on the other hand, has a number of advantages, one of which is the ability to obtain more for less. Larger teams, competent specialists, and greater back-end assistance could be examples.  

The CAD outsourcing companies already have delivery centers and skilled resources who have been pre-trained on the AEC industry standards and codes. Because of international currency exchange rates, organizations in the Global North frequently use outsourcing companies in the Global South to help them manage their businesses at a reduced cost. 

3. Digital Transformation/Collaboration

AEC Challenges- Digital Transformation/Collaboration

Traditionally, the industry has prioritized gradual and slow improvements. This, however, will no longer suffice. Projects are becoming increasingly larger and more complex. The increased demand for ecologically conscious construction means established approaches must alter. The scarcity of competent resources and technological competence will only worsen. These are complex concerns that necessitate novel approaches to thinking and doing. 

Even though the AEC sector is primarily concerned with the actual construction of sites and buildings, technology is constantly changing how we do everything. The application of technology and procedures to how we do business is known as digital transformation. 

Technology is being used increasingly often and in a wide variety of ways. Technology is now being used for new purposes, such as the advanced rendering of the built environment, 3D laser scanning, reality capture, and the removal of paper from our operations in favor of digital ones. Architecture, engineering, and construction firms must comprehend the digital revolution of their industry and start moving in that direction if they want to compete. If not, they risk falling behind. 

4. Remote/Hybrid Model

Remote/Hybrid Model

Collaboration capabilities are even more essential for simplifying workflows in remote and dispersed teams. Your project stakeholders should be equally connected because technology has virtually everything connected.

Consider what you can Control. Emphasize fostering a wonderful work culture, robust business & financial models that support team growth, and development and growth possibilities. 

The job market is the one factor you have no control over. Both job seekers and your workers are in a stronger position to choose where they work. Due to the expansion of the architecture, engineering, and construction industries, workers can simply find another fantastic employer where they can earn more money and have more flexibility. 

5. Restructuring Your Firm

Restructuring Your Firm

For most of its lifespan, a firm goes through various stages. Depending on the company’s success and the broader economic outlook, some of these phases will involve expansion or recession. Employee strength, company goals, budget allocations, technology adoption, and so on all undergo significant change and instability during these phases.  

Using a third-party service provider to assist the primary organization speeds up the transition process. With the help of an outsourcing partner, you can easily reduce or expand your team’s size. 

6. Expansion

AEC Challenges- Expansion

If you want to keep your business lucrative and successful, it must grow & evolve. Growth demands far more than just new ideas. It calls for additional office space, infrastructure, production and development capacities, equipment, large teams, and more people to lead and manage these teams and guarantee that they continue to grow.  

Many AEC businesses fail to grow because they lack the finances and resources to take their ideas through to completion. These challenges can be avoided with the help of a CAD outsourcing partner. It’s a practical and logical approach for a business to work with offshore teams to meet its growth objectives. 

7. Meeting Deadlines/Lack of Resources

Meeting Deadlines/Lack of Resources

The AEC industry is developing rapidly, and there is fiercer competition for the best employees. A desire exists to make investments in technology that will improve everyone’s jobs. Your team will be able to focus more on improving design and less on repetitive, non-value-added chores that can be automated with the correct design solution. Maintaining and even enhancing current processes is one of the most important criteria to consider when looking at new CAD products. 

CAD Outsourcing is a powerful tool used by companies around the globe to leverage the global talent pool and get competitive. You have the flexibility to build your dream engineering and design team by selecting from a large pool of technical resources. 

Also, because of the time zone differences, the outsourcing partner working as your extended arm can work on projects and solve problems outside of the primary company’s business hours. A company in the US time zones may shut its offices in the evening every day, but its CAD outsourcing partner in India is just getting started on a fresh day. The virtually opposite operating hours enable a continuous flow of assignments, deliverables, and outcomes that benefit the client and their customers. 

8. Interoperability


The future of interoperability in construction is facing three main challenges to developing the understanding of interoperability beyond the standardized semantic interoperability of integrated systems, including a growing number of systems that are emerging, and making a transition from information to knowledge management 

The industry is transforming as a result of digital transformation and will continue to do so. Construction professionals are embracing cloud computing, virtual reality, and other technology.   

The inherent collaborative character of the domain is one of the reasons why interoperability has been and continues to be an essential issue for the architecture, engineering, and construction (AEC) business. Interoperability is a major challenge due to the exchange of information across organizational boundaries and disciplines. This cross-organizational aspect has complicated the application of models for information exchange in the case of AEC.  

9. Preparing for Next Generation

Preparing for Next Generation

The dynamics of the workplace are changing, and younger generations are entering the workforce with varying expectations from earlier generations. To maintain the diversity of ideas and a strong pipeline for future talent in the AEC industry, where expertise is such a highly prized resource, firms must balance the experience of older personnel with the addition of new blood. 

The younger population has different expectations and ambitions than older workers, which presents a problem for AEC companies. The younger generation demands a solid technological environment in relation to technology, in addition to wanting it. Younger generations have less patience for outdated technology and procedures, which ultimately causes turnover and corporate churn. 

10. Embracing the Change

Embracing the Change

We don’t often seek out change, especially when your team has been using the same CAD software for many years. Even when your application is no longer serving you, it’s easy to become complacent. Creating new value and growth frequently necessitates thinking outside the box to see what new tools and processes we can adopt. 

The advantages of incorporating outsourcing into a company’s business plan are numerous. According to a Deloitte report from 2019, the outsourcing and shared services market would develop “at a compound annual growth rate (CAGR) of over 7.4 percent from 2019 to reach US$ 971.2 billion by 2023.” According to the report, the OSS market will exceed US$ 1 trillion in the next six years if current growth rates continue. 

According to another report, at a cumulative annual growth rate (CAGR) of 13.6%, the global market for drafting services is anticipated to increase from $4.69 billion in 2021 to $5.33 billion in 2022. The COVID-19 impact, which had previously resulted in restrictive containment measures like social isolation, remote work, and the closure of commercial activities that resulted in operational challenges, is largely to blame for the growth of the companies as they reorganize their operations and recover. The market is anticipated to grow at a CAGR of 12.0 percent to $8.40 billion in 2026.  

Outsourcing CAD services contain an inherent added value over in-house design/drafting processes. Commencing from an early phase of the conceptual design process to the final design delivery, multiple benefits as associated which contribute to economic planning, design, and construction phases. 

The Future of Construction lies in Collaboration  

Each stakeholder in the construction value chain will need to create their own plan for navigating or instigating disruption. Particularly vulnerable to commoditization and falling proportion of value for certain of their activities are engineering and design, materials distribution, logistics, general contracting, and specialist subcontracting. Businesses might attempt to uphold existing positions while adapting to the changing environment, or they can reinvent themselves to benefit from developments in the sector. Everyone will need to spend money on tools like agile businesses.  

The demand for computer-aided design (CAD) services is predicted to increase, which will fuel the market for drafting services. The practice of designing and drafting products, structures, or other things while using computer technology is known as computer-aided design (CAD). Due to the enormous advantages that CAD offers to consumers, architects, interior designers, and real estate developers, CAD outsourcing has emerged as being particularly pertinent in the field of architecture and building design. For instance, the American software business Autodesk reported that its revenue from the sale of its building, engineering, and architectural products, as well as its AutoCAD and AutoCAD LT products, increased by 37% in 2019. The market for drafting services is therefore expanding as a result of the rising demand for CAD services.  

Follow INDOVANCE Inc for AEC Industry Updates, CAD Tips, and Global Construction News.  

Indovance Inc.  with its exclusive delivery hub in India is a global CAD technology partner serving the needs of the AEC industry since 2003. At INDOVANCE we focus on the unique need of each project or client and believe in addressing the real challenges and guarantee that the process will be well-coordinated, smooth, efficient, and hassle-free.  

We collaborate with our customers around the world to develop bespoke business solutions using our enormous engineering talent pool and state-of-the-art technology. To deliver long-term engineering and business strategies, we align with your culture and processes to create an unbreakable partnership. With over 500 full-time employees and more than 600 customers in the US, Europe, India, and Asia, we are poised for the next level of success.  

For more queries regarding any of the above-mentioned topics, feel free to connect with us on our website www.indovance.com or contact us on +1-919-238-4044 

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