What to Expect for Construction in H2
When looking at the sectors in which we build (industrial, mixed-use, office, retail/hospitality, medical, and tenant improvement), demand still remains across almost all of them. There is an expected 14.3 percent growth in nonresidential construction expected for this year, before slowing down going into 2023. Office, retail, and hospitality, in particular, are all expected to grow into next year, with warehouse construction slowing because of a drop in demand for household goods.
Construction Labor
Training and mentorship are filling the skilled labor gap, increasing team member retention. Additionally, compensation has been on the rise, making the construction trade a more attractive employment option. The construction unemployment rate is now well lower than the pre-pandemic levels and the sector is filling more positions. Skilled trades, however, continue to struggle to recruit the younger generation to fill the gap left by early retirees from the pandemic.
Supply Chain
Despite inflation, demand for construction remains high as recent developments in the shipping industry point to decongestion in the supply chain. Ports are seeing shorter wait times and the trucking industry appears to be rebounding with more drivers to share the load. Delays will continue to linger, and we can expect the construction of local semiconductor plants and the Infrastructure Investment and Jobs Act to be additional factors to consider for non-government projects that require the same materials, like concrete, for their buildings.
Material Costs
Overall construction volume is expected to grow by 5% over the course of 2022. Final construction costs are expected to remain high for at least another quarter, but as more supply chain solutions are put in place, we can expect material costs to decrease even more. The cost of steel, specifically, is expected to continue its trend downward as 2022 progresses.
Download Our Q3 Quarterly Report and Infographic
Popular Past Posts
Categories
Follow Us
Related Posts
-
Today’s Trends in Dallas and Phoenix Construction
Our mission is to provide you with the latest insights into market trends and conditions. This Q2 2024 report is a valuable resource, offering comprehensive data that not only shares insights behind current market conditions but also outlines their impact and proactive strategies to prepare for the future. With a particular focus on the design and construction sectors, this report equips us with the knowledge needed to build with confidence and readiness in Dallas and Phoenix.
-
LGE’s Q1 2024 Construction Delivery Outlook.
At the core of our mission is the commitment to provide you with up-to-the-minute insights into prevailing market trends and conditions. Tailored specifically to the design and construction sectors, this report empowers us with the knowledge to approach the market in Dallas and Phoenix with confidence in 2024.
-
Innovations in Design-Build: A Conversation with LGE Design Build’s Texas Team
In a recent interview, LGE Design Build's Texas team discussed their effective communication strategies in design-build projects. They highlighted the use of technology and shared examples of successful client collaborations. The team also expressed excitement about emerging technologies like 3D scanning and Matterport walkthroughs, which are shaping the future of design and construction in Dallas.
-
Navigating Supply Chain, Material, Labor and Construction Trends: Insights from LGE Design Build.
The Dallas-Fort Worth Metroplex and Phoenix regions are witnessing significant growth, along with their respective commercial real estate and construction sectors. In this dynamic environment, there are both challenges and opportunities. To ensure your business thrives, it's crucial to stay well-informed and adapt to market trends. At LGE Design Build, we are committed to assisting you in navigating these thriving markets. Feel free to access our Q3 Construction Delivery Outlook for the most up-to-date research and insights.