{"id":24082,"date":"2023-12-26T02:59:59","date_gmt":"2023-12-26T10:59:59","guid":{"rendered":"https:\/\/essential.construction\/news\/prospects-for-construction-and-engineering-industry-in-2024\/"},"modified":"2023-12-26T03:00:01","modified_gmt":"2023-12-26T11:00:01","slug":"prospects-for-construction-and-engineering-industry-in-2024","status":"publish","type":"post","link":"https:\/\/essential.construction\/news\/prospects-for-construction-and-engineering-industry-in-2024\/","title":{"rendered":"Prospects For Construction And Engineering Industry In 2024"},"content":{"rendered":"

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Construction went on to enter this year, stamped by a 7% surge in nominal value added and a 6% rise in nominal gross output as compared to 2022. 1<\/sup> As of the third quarter of this year, average construction spending went over to maintain a steady path upward.2<\/sup> But if these trends in real GDP data continue from last year, it is indeed significant to note that most of the topline growth is likely being pushed by price inflation vis-\u00e0-vis volume. Apart from this, the grappling with the inflation that\u2019s ongoing, the sector is facing quite a volatility in material prices as well as increasing labor costs. Another major issue is the present and continuous shortage when it comes to skilled labor, which continues to hamper the sector. Apart from this, the high interest rates and tighter lending standards are also affecting construction activity.<\/p>\n

It is well to be noted that looking ahead to 2024, there could indeed be a boost to construction that\u2019s associated with manufacturing, transportation infrastructure, as well as clean energy infrastructure, as funds from three major pieces of legislation passed throughout 2021 and 2022, which were the Infrastructure Investment and Jobs Act- IIJA, the Inflation Reduction Act- IRA, and the Creating Helpful Incentives to Produce Semiconductors- CHIPS Act, which are indeed expected to flow through the industry. 3<\/sup> As such, construction confidence is indeed high, with the Associated Builders and Contractors- ABC identifying anticipations and pushing for an increase in profit margins and also staffing levels, especially in the first half of 2024.4<\/sup><\/p>\n

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  1. E&C firms push to balance sustainability as well as efficiency<\/strong><\/a><\/li>\n
  2. E&C firms to unleash new value by way of leveraging digitalization and embracing generative AI<\/strong><\/a><\/li>\n
  3. E&C firms to explore the varied effects of ongoing economic uncertainty<\/strong><\/a><\/li>\n
  4. E&C firms are most likely to be more strategic and go through persistent cost volatility<\/strong><\/a><\/li>\n
  5. E&C firms are most likely to adapt to new work as well as workforce norms<\/strong><\/a><\/li>\n<\/ol>\n

    REFERENCES<\/u><\/strong><\/p>\n

    1. Deloitte analysis of data from U.S. Bureau of Economic Analysis.<\/p>\n

    View in Article<\/a><\/p>\n

    2. Deloitte analysis of data from U.S. Census Bureau.<\/p>\n

    View in Article<\/a><\/p>\n

    3. Heather Boushey, \u201cThe economics of public investment crowding in private investment<\/a>,\u201d The White House, August 16, 2023.<\/p>\n

    View in Article<\/a><\/p>\n

    4. Associated Builders and Contractors, \u201cABC\u2019s construction backlog indicator steady in August, contractors remain confident<\/a>,\u201d news release, September 12, 2023.<\/p>\n

    View in Article<\/a><\/p>\n

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