The recent construction industry slump in nonresidential structures is blamed on decreased demand, labor shortages, and the rising costs of materials. During 3Q 2021, project owners began postponing projects. The spending dropped most noticeably in lodging and public safety construction industry projects.
Other Factors Impact Temporary Construction Industry Nonresidential Slump
There are other factors at work…Pandemic-induced behavior changes have undermined several commercial real estate segments…Since March
2020, construction spending in the lodging and office
categories has declined substantially…–ABC
The Associated Builders and Contractors’ GDP (gross domestic product) report indicated investment in the third quarter of 2021 fell 7.3%. Datacenter construction has increased, and it is notable that even though datacenters fall under the “office space” umbrella, the construction industry decline in office projects was solid. Still, this two-year drop is not expected to continue.
Architecture billings are up; always a sign of future investment. Other construction industry projects remain strong in the healthcare, e-commerce, and educational facilities sectors. Material prices are expected to stabilize. It is anticipated that hesitant construction companies will be more likely to move forward on delayed commercial structure projects.
Five 2022 Commercial Building Statistics You Need
According to Dodge, construction starts will increase 6% in 2022. The “main driver” will be residential construction.
Construction industry commercial building statistics are important because commercial construction increases job opportunities, local materials’ costs, and creates business opportunities. The Build Back Better Act will address the backlog of projects, including:
- Bridges
- Broadband communications
- Ports
- Railways
- Roads
- Transit facilities
That could lead to a 5.5% construction spending annual growth rate by 2023.
Construction Monitor uses building permit information for construction industry companies that want to be competitive in a dynamic market. If that’s your company, we have the commercial construction information you need to make marketing strategies for the new year:
- How much – Value
- What – Project specifics
- When – Project dates
- Where – Your area of interest (community/city/state)
- Who – Contact information
This could be the year you make more money doing what you were born to do: build a business. Learn more. Email, call, or contact Construction Monitor.