Non-Residential Construction Market Still Faltering

Nonresidential construction has dropped  25% since 2020, while residential construction has boomed.

2021 Construction Market

Nonresidential construction startsOverall, however, the construction industry in in recovery.

 

Average commercial construction costs have increased 4.5 percent (4.5%), and total cost growth by year-end is project to average 6 (6%) percent.

Despite signs of recovery, the labor shortage is a persistent, and unresolved problem that appear to have no solution.  Material prices will sort themselves out, however, lack of skilled labor is endemic.

Construction employment
• Unemployment rate:
August 2021: 4.6%
August 2020: 7.6%
• Total employment:
August 2021: 7.4M
August 2020: 7.2M
Construction costs
Labor wages: +4.46% (Aug. 2020 to Aug. 2021)
Material costs: +23.1% (Aug. 2020 to Aug. 2021)
Total costs: +4.51% (Aug. 2020 to Aug. 2021)
Construction spending
Nonresidential: -9.5% (July 2020 to July 2021

Construction Material CostsConstruction Delays

via Four BT, LLC – Efficient Construction Planning, Procurement, and Project Delivery Solution www.4bt.us