Construction Industry Economic Outlook

“They’re no longer lollygagging when it comes to committing to projects…” That’s one of the first economic indicators a Canadian construction CEO noticed in 2022. This year the construction industry will see a year of rebuilding, reorganizing, and recommitment to the future. Challenges and opportunities.

Construction Industry 2022

Pricing continues to be a shot in the dark as supply chain and materials remain unknowns. And then there’s COVID – whatever variant – causing jobsite stress and adding to the labor shortage. All that aside, you have to admit: It’s beginning to feel like “normal” again.

Ken Simonson of Associated General Contractors of America says he’s “nervously optimistic.” Materials lead times seem to be shortening and nonresidential construction is looking up. But vaccine hesitancy among construction industry employees means more downtime and greater severity of COVID’s symptoms for workers.

Inflation’s almost stunning rise might benefit the construction industry. It’s sad but true: As more people have difficulty paying their bills, more people will return to work. Pricing uncertainties are pressuring developers to sign contracts sooner, rather than later.

“People are starting to think that if they wait, they may miss the right opportunity to build their project,” said Deron Brown of PCL Construction.

The Three Ps of Construction

People, prices, and productivity will dominate the construction industry in 2022. U.S. manufacturing is returning home, as overseas manufacturing exacerbated an already problematic supply chain.

Another concern is hoarding by construction companies. The supply chain snafu and materials shortages led to a Depression-era mentality; many are buying what they can, as much as they can, and filling their warehouses “just in case.”

In 2016, a report was released on what people “really want” in residential construction. What people want will always drive commercial and residential construction, especially in 2022. What do you want to achieve this year? If it’s more like making history rather than watching others do it, you’ll need business-building processes. We’ve got some ideas for you.

Call 435-586-1205 or contact Construction Monitor.

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