Market Update
Current market trends, predictions, and
lead times for the commercial construction industry.
Latest Trends in Commercial Construction Q1 2024
Updated 04/09/2024
The value of construction built in February 2024 was $2,091.5 billion, which is -0.3%% MoM and +10.7% YoY. The sectors that showed the highest growth YoY were public safety (+35.7%), manufacturing (+31.9%), and religious (+21.6%).
Most construction costs are still experiencing some volatility due to ongoing global market fluctuations. While some materials have seen decreases in pricing, others continue to fluctuate.
Key Insights
Demand & Confidence
- Private commercial construction volume increased by 9% from January-February 2024 and remained the same YoY.
- Nonresidential construction employment has increased 4.1% YoY, with growth seen in all subcategories of the industry. The industry added 24,600 jobs in March, a growth rate nearly 80% faster than the one-year average.
- The ABC Construction Backlog Indicator declined in February, bringing a slight decrease in contractors’ confidence. Although ABC’s Construction Confidence Index registered declines in February for sales, profit margins, and staffing levels, the index values for these three areas remained above 50, signaling anticipated growth over the upcoming six-month period.
- National nonresidential spending decreased by 1% in February. Despite this decrease, spending is up 14.2% YoY.
Costs
- Construction material input costs surged 1% MoM, an increase of 0.4% YoY.
- Construction input costs are up 38.7% since February 2020.
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 Materials Cost Index
NOTE: You can toggle each material data set on/off by clicking the description.
Source: US Bureau of Labor Statistics
Source: US Bureau of Labor Statistics
Source: US Bureau of Labor Statistics
Source: Local Data
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.
