In March 2024, the construction industry witnessed both successes and challenges. Despite an 8% decline in total construction starts, notable projects like the $653 million California Light Rail Extension and Amazon Web Services' $10 billion investment in Mississippi underscored significant opportunities for growth...
This year, the construction industry has yet to indicate the prosperity we expect to come. While construction starts experienced a modest increase in January 2024, the industry remains stagnant overall, attributed to factors such as higher interest rates and tight credit standards....
Navigating the ever-changing construction landscape is a journey we are embark on together. It was amazing to witness the resilient strength of the residential construction to the way the industry handled the end of 2023, we have seen that our construction industry is nothing if not adaptable...
As we stand on the brink of a new year, I find myself reflecting on the profound impact goal- setting has had on my personal and professional journey. In the construction industry, where each project is a testament to vision and execution, setting clear and actionable goals is more than a ritual—it's a guiding principle...
The U.S. construction industry is undergoing major changes, marked by an expansion in manufacturing construction, fluctuating construction starts, pivotal legal implications, and cutting-edge technology adoption. The industry's future looks promising, but the challenges posed by the recent NLRB ruling, economic volatility, and rapidly evolving technology trends underscore the complexities of this transformation. In these tumultuous times...
The U.S. construction industry is undergoing major changes, marked by an expansion in manufacturing construction, fluctuating construction starts, pivotal legal implications, and cutting-edge technology adoption. The industry's future looks promising, but the challenges posed by the recent NLRB ruling, economic volatility, and rapidly evolving technology trends underscore the complexities of this transformation. In these tumultuous times...
It has been a week marked by diverse outcomes, reflecting underlying growth concerns across sectors and indices. As we navigate forward, staying informed and prepared will be crucial for navigating the evolving landscape with confidence. By remaining adaptable, proactive, and seizing opportunities, we can position ourselves to thrive in the shifting market environment...
The construction industry has faced many challenges and changes in the first quarter of 2023. Material prices are finally seeing a year-over-year decrease, which is a positive sign for the industry...
The construction industry saw a rebound in total construction starts in February, mainly due to robust building activity in the manufacturing and housing sectors. However, the commercial and institutional sectors showed signs of weakness, and the first two months of the year still remained below their 2022 levels...
While the construction materials price decline continues, the nonresidential construction industry is expected to feel little to no effect from higher interest rates in 2023 due to the industry backlog remaining one month higher than in January 2022. However, the current strength of the economy makes a recession more likely during the next 12 months...
One early glimmer of hope in our industry is that the price of construction materials has been falling, with the fourth monthly decline in a row for most categories. Could this indicate a slowing down of inflation...?E
While the building industry continues to see softening in the market, the real question is whether we will see a recession. Economists are mixed on their opinions, most noting that even if the US sees a technical recession the effects on the building industry may be mute. Winter is definitely coming my friends, but you might only need a light sweater...
After rising steadily for nearly two years, the prices of most of our construction commodities have been declining recently. his has eased some of the pressure on developers starting or continuing with projects. However, we believe that the work in certain market sectors will slow
Fannie Mae began predicting an economic downturn in 2023 as early as their April forecast. More recent forecasts have adjusted the depth and timing of the downturn in response to the increasingly aggressive interest rate increases coming from the Fed. The current forecast calls for the downturn to begin in 1Q 2023 and to persist for most of that year.
Despite headwinds, construction demand is expected to remain strong for the near term. Although the possibility of an economic downturn should be taken seriously, considerable pent-up demand for new construction—including a nationwide housing shortage— and government infrastructure projects should largely sustain activity.
Despite headwinds, construction demand is expected to remain strong for the near term. Although the possibility of an economic downturn should be taken seriously, considerable pent-up demand for new construction—including a nationwide housing shortage— and government infrastructure projects should largely sustain activity.
The market price of lumber reached a recent peak of $1,464 on March 3 before declining through mid-April. However, the price has plummeted since then, closing at $573 on June 8th.
The labor market has outpaced the material and equipment markets. 98% of labor costs increased over the last year. When looking at year-over-year costs, 93% of the construction materials, equipment and labor rates changed in cost.
The first week of March saw the IHS Markit Materials Price Index (MPI) jump by 8% – the highest on record. This is primarily due to energy costs, which have jumped by almost 22% in the same period. Discover the latest material prices for you and your clients.
In this economic climate, we have found it increasingly important to have knowledge of the current state of construction escalation for both materials and labor. And since we couldn't find an all-encompassing free source, we created one.
"These past few years have completely changed the way our industry is doing business. Employees are working remotely, we're fabricating off-site, escalation is effecting all aspects of a development. So, how do we adapt to a changing industry?"
"In 2008, I started Paragon. At the time I was working for a major construction firm and felt the industry was losing its way. We lost our integrity, our ability to collaborate, and our top-down communication on projects. When the recession hit, we committed ourselves to our core values so that we could turnaround broken projects, develop trusting relationships with our clients, and mend the wounds of our industry..."
"Let’s be honest. Somewhere along the line, our industry was left behind in the technological push of the last decade. If the construction industry was truly dedicated to our clients, we would be consistently incorporating state of the art technology to make sure we are providing as many solutions as possible..."
"Could the lack of trades and craftspeople this bring on the next real estate recession? I honestly believe it will. So how do we turn the tide of this inevitable tsunami? Perhaps we could stop the impending recession in its tracks by bringing respect and pride back to the trades and crafts industries..."
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