Is relief in sight for construction material price?
Is relief in sight for construction material price increases? As we head into a weakened economy due to interest rate hikes, housing and private sector construction starts are down but the government keeps spending on infrastructure projects.
January 2023 vs. January 2022 (YoY)
Total construction down 14%
Residential starts down 34%
Non-residential starts down 2%
Non-building starts (roads & infrastructure) up 10%
Last week I attended a construction conference and gained great insight into what companies are seeing across the country. Most civil and general contractors have noticed a decline or delay in multi-family and commercial construction projects but many of these contractors have large backlogs they are working through. Contractors focused on government projects are seeing great opportunities and remain optimistic for 2023. Labor shortages and material prices continue to erode contractor margins but to a lesser extent than last year.
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