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This article reports on a five-year forecast of work-in-progress payments
ConstructConnect, a leading provider of software solutions for the preconstruction industry, released the US Put-in-Place Construction Forecasts for Fall 2024. The report, prepared by Michael Guckes, ConstructConnect's Chief Economist, projects estimated total construction at $2.164 billion for 2024, up from the previous estimate of $2.075 billion, a 4.3% increase.
"Put-in-Place construction continues to benefit from the delayed effects of stimulus spending, especially that of megaprojects from past quarters and even years," Guckes stated.
Highlights from the report include:
- US inflation-adjusted gross domestic product (GDP) clocked in at $22.918 trillion, representing 1% and 3.1% growth over the previous 6- and 12-month periods through the end of second quarter 2024, respectively.
- Forecast levels by type-of-construction category and subcategory are mixed.
- Office construction continues to feel the effects of the work-from-home trend, which has sapped demand.
- Manufacturing spending continues to normalize as the boom in construction Starts activity fades.
- The outlook for Civil Engineering activity, led by Power Infrastructure and Communications, remains very strong thanks to the rising use of electric products throughout the economy.
Looking ahead, the combined expectations of falling interest rates, slowing wage growth, and the continuance of only modest movements in the overall price of construction materials should support future industry growth. Michael Guckes, Chief Economist, ConstructConnect
Falling interest rates would help to relieve some of the building pressure that has impacted commercial real estate owners and developers since early 2022, when rates moved higher in response to rapidly rising inflation.
The Put-in-Place Construction Forecasts report is a five-year forecast of work-in-progress payments created in partnership with Oxford Economics. It covers 18 types of construction across residential, commercial/industrial, and infrastructure.
Download the Fall 2024 Put-in-Place Forecasts
About ConstructConnect
Construction Starts Here™ at ConstructConnect, where our mission is to help the construction industry start every project on a solid foundation. A leading provider of software solutions for the preconstruction industry, ConstructConnect empowers commercial construction firms to streamline their workflows and maximize productivity. ConstructConnect operates as a business unit of Roper Technologies (Nasdaq: ROP), a constituent of the Nasdaq 100, S&P 500, and Fortune 1000.
