A Brief Forecast of the Construction Industry Q2 2022
The construction industry in the Southwest continues to follow a positive trajectory. Growth is occurring across almost every commercial construction sector, namely industrial, office, mixed-use, retail/hospitality, healthcare, and adaptive re-use/tenant improvement.
Cost of Construction Materials to Remain High
The good news for the construction industry is that the market is beginning to have some semblance of what it looked like prior to the pandemic.
Supply Chain Outlook for General Contractors
In 2022, the demand for commercial construction has nearly returned to pre-pandemic levels. General contractors are beginning to fill backlog orders from the hiatus created by COVID-19.
Construction Labor Outlook for Q2 of 2022
One of the major pain points for general contractors, right now, is the shortage of skilled workers. Despite the steady decline of construction unemployment, firms are still struggling to find the necessary manpower across a number of different trades.
The Status of the Construction Supply Chain
To put it very simply, construction materials are in short supply. Natural disasters, manufacturing and production setbacks, logistical bottlenecks, labor shortages, and political instability have conspired to produce what several sources call a “perfect storm”
An Outlook on Material Cost for Q1 of 2022
Commodity prices have been increasing across the board. Overall construction costs for the 12-month period through the end of August 2021 rose by 4.5 percent, with material costs leading the way with a massive increase of 23.1 percent.
A Construction Forecast for Q1 of 2022
The positive trajectory of the construction industry in Arizona and Texas is continuing. We’ve been fortunate in that the sectors in which we build have continued to grow.
A Look at Construction Labor for Q1 of 2022
Labor markets continue to present challenges, and the effects are being felt across many sectors of the economy. In the construction industry, employment is nearing pre-pandemic levels, while demand for architectural work and construction is growing.