In a recent video, AGC of America Chief Economist Ken Simonson highlighted key findings from the 2024 Construction Industry Hiring and Business Outlook Survey, sponsored by Sage. The survey, which gathered nearly 1,300 responses, reveals that contractors remain optimistic about the overall construction industry, although slightly less so than the previous year. Notably, there is a strong sense of optimism regarding infrastructure and federal spending categories, reflecting the anticipated influx of funds from the Infrastructure Investment and Jobs Act and other recent legislation.
However, contractors express significant concerns over high interest rates, which are expected to continue constraining developer-financed sectors such as office, retail, warehouse, and multifamily construction. Additionally, the labor supply remains a critical issue, with 77% of respondents reporting difficulties in filling positions, nearly matching the 80% from the previous year. Despite these challenges, there is continued optimism in specific areas such as manufacturing, data centers, healthcare, warehouses, and educational spending. Material costs and supply chain issues have largely stabilized, although problems persist with obtaining electrical equipment and HVAC systems. Contractors are also making strides in technological investments, with many exploring AI, robotics, and advanced software for the first time. Overall, Simonson predicts a positive yet evolving landscape for the construction industry in 2024.