Market TRENDS

Current market trends, predictions, and
lead times for the commercial construction industry.

Commercial Construction Trends and Data

Updated 10/02/2024

The value of construction built in August 2024 was $2,131.9 billion, a 0.1% month-over-month decrease and a 4.1% year-over-year growth. Despite recent fluctuations, sectors like public infrastructure and private manufacturing continue to drive growth. The sectors that showed the highest growth YoY were public safety (30.7%), manufacturing (18.3%), and water supply (17.0%).

Key Insights

Demand & Confidence

Costs 

Predictions

  • Deloitte Insights predicts that in 2024, sustainable practices and technological advancements will significantly influence the construction industry. The report also anticipates a surge in construction activities related to manufacturing, transportation infrastructure, and clean energy infrastructure as funds from the Infrastructure Investment and Jobs Act (IIJA), the Inflation Reduction Act (IRA), and the Creating Helpful Incentives to Produce Semiconductors (CHIPS) Act are expected to disperse.
  • The United States Construction Market is expected to record a CAGR of 5% to reach USD 1,428.5 billion in 2024, according to a report by ResearchAndMarkets.com.

 

Construction Input Cost Index

Source: US Bureau of Labor Statistics

Construction Material Costs

Source: US Bureau of Labor Statistics

Many construction materials are returning closer to typical pricing, and indices indicate general stabilization for most commodities. However, some products may still see significant variations. For example, lumber, steel pipe and aluminum have seen double-digit cost decreases YoY, while concrete, glass, gypsum, and insulation have seen double-digit increases.

Labor Cost Index: Construction

Source: US Bureau of Labor Statistics

The cost of labor in the construction industry has increased steadily over the last few years. We saw a 1.18% increase in Q1 2024, and 4.16% YoY. Despite rising costs across all categories of construction, employment has increased rapidly.

Permit Timelines

Source: Local Data

Procurement Timelines

Source: Local Data

Most material procurement timelines have returned to more stabilized durations after significant procurement volatility and supply chain disruptions over the last couple of years. Still, many lead times are extended relative to historical norms for some specialty items, fixtures, and equipment. Based on our local data, these are the trends we’re seeing for material procurement.