Rashid khan: Bahrain construction industry must counter these key issues post pandemic!

As access to Covid-19 vaccines improves, new cases declines, and restaurants, amusement parks, and offices return to pre-pandemic normalcy, the construction industry must be ready to capitalise on shaped demand and population shifts that will create additional geographic markets in the coming decades. But, before getting to the good news, Rashid khan, the CEO of the Rashid khan constructions works ltd Bahrain, assert that the people in the industry will have to deal with important financial restrictions imposed or aggravated by the Covid-19 outbreak.

Besides being the head of the Rashid khan construction works ltd, Rashid khan is also the author of two highly recognized books on the construction business and bahrain’s crumbling infrastructure, and he advises several of the country's major owners and developers on construction projects. As per him, the construction industry must solve the following issues in order to participate in the broader economy's expected recovery from the pandemic:

Construction cost:

When it comes to construction cost, it is deemed as an aspect that is significantly influenced by market forces. While the construction industry gradually returns to pre-Covid levels, many contractors have pursued riskier projects for lower prices in order to keep their employees occupied. If contractors decide to seek these low-profitability ventures beyond 2022, the construction industry's resurgence will be slowed while the overall market heats up.

Skilled Worker Shortage:

For some years, the sector has been plagued by major labour shortages in technical jobs. Not just to meet today's scarcity, but also to design a new generation of employees to meet increasing demands for the better part of a decade and beyond, the sector must look for ways to entice and train new employees.

Increased Costs of Materials:

Prior to Covid, up to 30% of the materials and products used on numerous projects were imported to Bahrain from other countries. Many building supplies have seen significant price increases in the last 18 months. Rashid khan further affirms that the epidemic threw a wrench in the supply chain, which had been based on more than two decades of lower labour and material prices thanks to globalisation.

As a result, numerous manufacturers in the Bahrain are constructing new factories. Our domestic supply chain will be more reliable in the next years, but product costs will increase by at least 20% over current levels.

Contractor Adoption of New Technology:

Contractors in Bahrain have been sluggish to adopt sophisticated technology in order to increase construction efficiency. Rashid khan further asserts that most businesses have been unable to dedicate sufficient finances to modernise technology, software, and training in order to improve design fluency and productivity. Furthermore, few experts in the subject believe we will soon witness a significant change in this direction.

Conclusion

The infrastructure proposal recently proposed by the government of Bahrain highlights several key factors pointing to the construction industry's readiness for a decade of unprecedented growth. This legislative plan, together with historically low mortgage rates, development in the healthcare business, and changing demographics, signal a new construction boom.