2023 Trends to Watch in the Construction, Power Generation, and Mechanical Engineering Industries
2022 provided a wide range of elements for the construction, power generation, and mechanical engineering industries. From harsh economic conditions to a strong backlog, the year had its fair share of challenges but also experienced lasting positive changes. Much like the past year, 2023 is expected to be a mix of positives and negatives. Here are the top four things to watch going into 2023.
Many of the resources needed to complete a construction project will continue to be limited. From supplies to workers, the effects of COVID-19 are continuing to be felt throughout the industry. Inflation has hiked the prices of materials and interfered with the supply chain, making it increasingly harder for construction workers to access the necessary materials. While lumber and plywood were the main concern at the beginning of 2022, diesel and cement costs are going to be the issue during the first months of 2023.
Further, it has become difficult to recruit workers for the construction industry. November had an increase in job openings within the industry that is expected to continue to rise into the new year. While construction workers have been at a low, new federal spending promises should reinforce the need for new workers. These federal investments, which are set to extend for multiple years, could encourage those looking for a stable, long-term career to seek out a job in construction.
Nuclear Power Plant Growth
The latest research report by Spherical Insights & Consulting shows that The Global Nuclear Power Plant Equipment Market Size will grow at a CAGR of 2.6% over the coming years. It is projected for the market size to increase from $32.44 billion in 2021 to $38.82 billion in 2030. As governments around the world look to the future, they are recognizing the important role nuclear energy will play in society. Technological advances and significant industrialization are expected to help drive the market. Nuclear power plants will be the solution for countries seeking clean, dependable energy.
Robotic Welding Equipment
Changes are coming for the welding equipment market. Robotic welding has become a new trend to watch in the near future. These industrial robots are an automated welding solution that has continued to rapidly develop. In 2018, the market was valued at $7080 million and is estimated to reach $13100 million by 2025. The robotic welding market is projected to become a multimillion-dollar industry by 2028. This surge in popularity is due to its high productivity and time-saving benefits. Compared to other regions, North America has the fastest-growing robotic welding market.
Natural Gas Increase
The United States is expected to receive a higher number of natural gas exports in 2023. Further, natural gas pipeline exports will set new record highs within the first few months of the new year, reaching between 9.0 Bcf/d and 10.0 Bcf/d. These are greatly due to the growth we have seen in liquified natural gas (LNG). Though its trajectory was put on pause after the fire at the Freeport LNG in June paused operations, the facility is expected to be running again in December 2022. After the terminal resumes operations, LNG exports are expected to set a new record high in March 2023 at around 2.5 Bcf/d.
No matter what trends come, ARC is committed to our partners across all of these industries to bring the best specialty welding, machining, heat treatment services, and more to keep your operations moving safely and efficiently.