Research

H2 2021
Construction
Outlook

Material and labor availability constrain recovery

October 04, 2021
Contributors:
  • Henry D'Esposito

Despite enduring its share of challenges over the past 18 months, the construction industry has recovered quickly by most measures. Employment is nearing pre-pandemic levels, new construction starts are growing, and demand for architectural work remains strong. Yet two big challenges remain for construction. First, supply chain delays and record-high cost increases continue to put pressure on project execution and profitability. Second, the delta variant and future waves of the pandemic have the potential to slow economic growth, weaking the construction rebound and calling into question some of the rosier predictions for 2022.  

How will all of this play out for construction over the coming year? Some of the questions answered in our latest Construction Outlook include:

  • How much are construction costs expected to increase over the coming year?
  • What does the future look like for the supply chain of critical materials like lumber and steel?
  • How will the labor shortage impact the ongoing construction recovery?
Construction costs: Input vs. Final by building type­

Construction cost index (index value 100 = Jan 2018)

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