While contractors are optimistic about the future and an economic recovery should continue, the construction industry should expect long-term challenges in finding workers.
“Finding workers will be a challenge for much longer than material costs or supply,” said Ken Simonson, Chief Economist for AGC of America.
Simonson’s comments came during his 15th consecutive yearly presentation to the NC Annual Construction Conference, held March 2 at the Jane S. McKimmon Center on in Raleigh. His comments were made to about 1,200 participants.
Some highlights of Simonson’s presentation included:
- Economic recovery should continue but likelihood of recession remains high.
- Homebuilding is likely to fall for several months until prices, interest rates flatten.
- Multifamily, warehouse, retail, office, lodging are at risk from slowdown, rising rates.
- Infrastructure Investment & Jobs Act, “Chips+” Act, Inflation Reduction Act will give major boost to infrastructure, manufacturing, and power construction. But, money will be slow to turn into construction awards and spend, and Buy America(n), labor, environmental strings may tie up project starts for years.
- Materials cost and lead time trends are mixed, no longer all upward.
- Labor availability has resumed being the number one challenge for many contractors.
Download and view Ken Simonson’s complete presentation.