The construction industry continues to offer well-paying careers with a robust future at a time when labor availability remains the top challenge.
That was part of the message delivered by Ken Simonson, Chief Economist for AGC of America, in his presentation on July 23 to the RDU International Airport Authority.
“The construction industry is very hungry for workers and is paying more than other industries,” Simonson said in the RDU meeting held at a Wilmington hotel. “Wage costs will continue to increase at about 6 percent but our economy – and China’s economy -- are keeping material prices down.”
Simonson was invited by the RDU Airport to make his economic presentation as major RDU airport expansions are planned. Also attending the event was Dave Simpson, CAGC President & CEO.
Here are other forecast highlights offered by Simonson:
- Economic recovery: will continue but with sticky inflation & interest rates.
- Single-family: revival should continue despite 7% mortgage rates.
- Multifamily, warehouse, office: steep drops are likely as vacancies and costs climb.
- Data center, manufacturing construction, power, infrastructure: strong growth.
- Infrastructure Investment & Jobs Act, “Chips” Act, Inflation Reduction Act will give major boost to infrastructure, manufacturing, and power construction.
- Money will be slow to turn into construction awards and spending.
- Buy America, labor and environmental strings may tie up project starts for years.
- Material costs and lead times should pose few problems except for electrical gear, some electronics.
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