I had the pleasure of sitting down with Dodge Data & Analytics to get the inside scoop on the construction industry and what to expect for the rest of the year. Here are the main points that you all should know.
Economic growth is surging thanks to the growing number of vaccinated Americans and substantial federal stimulus.
This surge will continue into 2022 as consumers and businesses spend and invest anew.
Higher material prices and labor shortages, however, will impede a quick recovery for the construction sector.
Single-family construction to slow in 2021 after an incredibly robust 2020.
Multifamily starts to fall this year as construction remains soft in large metro areas.
The commercial construction recovery has begun but is uneven.
Warehouses, data centers, and renovations are bright spots.
The outlook for retail, hotels and traditional offices remains more uncertain.
Manufacturing output is rising as the economy recovers from the pandemic.
Construction will remain subdued as skilled high-tech manufacturing labor is sparse.
Nonbuilding/infrastructure construction will see tepid growth in 2021, followed by stronger growth with the expected passage of an infrastructure package.
Environmental public works and electric power are expected to be strong areas in 2021.
A slower recovery is expected for institutional building construction.
Healthcare will be the bright spot of the sector.
This is great information to keep in mind when you are looking for projects to bid on, or if you're debating if you want to take on a particular project.