As 2024 winds to a close, the construction industry finds itself at a crossroads of challenges and opportunities. Businesses are navigating rising labor costs, fluctuating material prices and ongoing supply chain disruptions—all while preparing for the year ahead. The November 2024 Economic Report provides a clear-eyed view of these complexities, offering data-driven insights to help construction leaders make confident, strategic decisions in this landscape.

The November 2024 construction report delivers a comprehensive overview of the economic landscape. Highlights include:

  • Steady GDP Growth Inspires Cautious Optimism
    • Q3 GDP growth landed at 2.8%, signaling resilience amidst economic uncertainties. While early projections for Q4 remain cautiously positive, this momentum could be pivotal for construction spending and project outlooks heading into 2025.
  • Labor Costs on the Rise
    • Labor expenses in the construction sector have surged over the past year, with compensation up 3.8% overall and union wages seeing a notable 5.8% increase. The report provides strategies to navigate these challenges, focusing on retaining talent while managing rising costs.
  • Non-Residential Construction: A Bright Spot
    • Non-residential construction activity remains a significant driver of economic growth, with year-over-year increases of 5.2%. Manufacturing construction leads the charge, fueled by reshoring initiatives and infrastructure investments.
  • Raw Material Costs: A Mixed Bag
    • Prices for key materials like copper and cement have seen increases, while others, such as steel, have shown slight declines. Global competition and domestic policy shifts could drive further volatility, making cost management a priority for contractors.
  • Risks and External Influences
    • Geopolitical tensions, hurricanes and evolving trade policies are among the external factors affecting supply chains and project timelines. The report outlines potential impacts and provides insights to help construction leaders prepare for unforeseen disruptions.

From understanding market drivers to mitigating risks, this report equips you with actionable insights tailored to the construction industry. With interest rates projected to decrease in 2025 and government incentives driving manufacturing growth, now is the time to strategize for the next phase of your projects.

Download the full report to learn more.

 

To discuss your specific situation, contact an Adams Brown construction accountant.