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The Construction Economics Brief, produced by ConstructConnect’s economics team, is a monthly video series whose aim is to provide the latest and most pertinent economic information to construction industry leaders in a concise video format.
Highlights from July 2023 release include:
- The latest data from trackers of construction material prices are pointing to a 4% - 6% year-on-year decline. This decline may, in part, explain a concurrent slowing in the rise of final bid prices for construction work.
- Supply chain performance has improved significantly since the third quarter of 2022. Current measures of supply chain performance reflect a system with greater free capacity, faster performance times, and lower prices. This has helped to build a worrying surge in inventories relative to sales.
Summary:
As supply chains continue to trend towards pre-COVID conditions, U.S. firms that have been holding excessive inventories will now find themselves at a cost disadvantage relative to those who have more quickly turned back towards the use of a just-in-time (JIT) inventory strategy. The advantage is two-fold, as JIT firms are not only buying materials for less but also avoiding inventory carrying costs.
About Michael Guckes, Chief Economist
Michael Guckes is regularly featured as an economics thought leader in national media, including USA Today, Construction Dive, and Marketplace from APM. He started in construction economics as a leading economist for the Ohio Department of Transportation. He then transitioned to manufacturing economics, where he served five years as the chief economist for Gardner Business Media. He covered all forms of manufacturing, from traditional metalworking to advanced composites fabrication. In 2022, Michael joined ConstructConnect's economics team, shifting his focus to the commercial construction market. He received his bachelor’s degree in economics and political science from Kenyon College and his MBA from the Ohio State University.
