Spring 2024
The construction sector continues to face challenges in 2024. Both construction and commodity costs have generally stabilized, but labor costs continue to apply upward pressure to overall costs. Despite a decline from its recent highs, the U.S. inflation rate has yet to reach desired levels, which implies that interest rates will remain elevated for an extended period. This situation continues to complicate and increase the cost of financing; however, robust fundamentals and demand for select markets and asset types ensure that companies will continue to plan projects.
The Construction Insights – Spring 2024 report External Link provides insights into the key factors that influence the U.S. construction sector in 2024, empowering you to make informed decisions for your organization throughout the year.
Key Takeaways:
- Globally, supply chain stress has receded from peak levels, but geopolitical tension is applying slight upward pressure.
- Construction and commodity cost increases have decelerated but remain elevated.
- Labor constraints persist in the sector, making it difficult to fill open positions and resulting in extended project timelines.
- Equipment lead times have eased, but some in-demand systems remain extended, which may be a new normal.
- Construction pipelines for industrial and office construction have fallen from peak levels, while retail construction remains restrained.
Download the full report External Linkto stay informed on the dynamics influencing the U.S. construction industry in 2024.
