The Long-Term Outlook for Construction
Robust Construction Forecast Demands Effective Project Planning
December 2017 – This new report, The Long-Term Outlook for Construction, examines the construction industry’s future as it relates to growth and skilled labor availability and lays out a general forecast pattern of nonresidential construction through 2030. It provides for nominal growth averaging approximately 4% with more rapid gains early when construction activity benefits from money spent on rebuilding hurricane-ravaged areas along the Gulf Coast, as well as from spending associated with rebuilding the nation’s transportation and water infrastructure.
The improving economy has brought more than just a soaring stock market and its attendant growth, it has facilitated a rise in construction activity and jobs. Yet, while the construction labor force has risen above its recessionary low as workers have entered or re-entered the industry, the construction labor force frustratingly remains below its pre-recession peak. This is true in particular for the most highly skilled labor force, and many new entrants lack the most in-demand skills. As such, firms continue to report turning away work due to the labor shortfall, whereas others report longer hours and higher pay for skilled workers in order to complete jobs.
Despite the skilled labor and other challenges, construction growth is still expected to trend up over the long-term. However, the projected construction spending and headcount growth outlined in this report illustrates the realistic, yet conservative, future outlook – an enormous long-term skilled labor gap in the next 10 to 15 years based on current growth trends.
What you will find in this report:
- Recent Construction Patterns… a discussion of the industry’s cyclical patterns for residential and nonresidential construction, including factor restraining and aiding growth.
- Nonresidential Construction Forecasts… a discussion of the baseline construction forecast with adjustments for 2017 hurricane and new infrastructure spending expectations.
- Practical Forecast Application… a discussion about what the long-term forecast means at the project planning and execution levels.
Download this report now at no cost to understand what is expected over the next 12-15 years and how being informed should affect project planning. This document provides guidance to industry stakeholders on this important issue.