Construction industry powers forward
Strong construction momentum will easily carry through the first half of 2019, despite project margins facing pressure from all sides. Our latest research finds robust U.S. economic fundamentals will drive further growth of the industry, which in 2018 recorded a 5.1 percent increase in total construction value and a 4.5 percent increase in employment.
Potential risks to the construction industry such as trade war escalation, deteriorating macroeconomic conditions and the worsening labor shortage are largely balanced by potential boosts that include a large-scale federal infrastructure package, relief from tariffs and the continuation of 3.5 percent annual GDP growth.
Other key factors affecting the construction industry in 2019 include:
- Rising construction costs will sideline select projects
- Trade policy is a powerful “swing” force
- Construction tech in growth mode, presenting opportunity for labor shortage relief