• Latest
  • Trending
infrastructure cost management growth in construction

Growth in construction workloads continues to accelerate with firmly positive expectations

August 12, 2021
Evonik
Acrow

Modular steel detour bridges from Acrow lessen impact of multi-year interstate renovation in Massachusetts

March 16, 2023
Daltile

Daltile launches “Quick-Ship” commercial tile

March 13, 2023
CarbonBuilt

4 Corners Carbon Coalition funds first-of-its-kind project to turn air into concrete at scale

March 7, 2023
Maverick

Homebuilder warranty and insurance leader Maverick receives builders risk insurance endorsement from Home Builders Association of Georgia

March 7, 2023
Protek Paint

Protek Paint launches live in-studio lime-based & acrylic decorative plaster classes for 2023

March 6, 2023
BotBuilt

BotBuilt selected as top 25 finalist for the 2023 Ivory Prize for Housing Affordability 

March 3, 2023
Overstock

Overstock appoints Joanna Burkey to board of directors

March 2, 2023
Radix

Radix to present “3 Steps to Reduce Operational Costs and Increase Energy Efficiency” at Campus Energy 2023

February 27, 2023
High Concrete Group

High Concrete Group LLC wins big at PCI 2023 awards

February 21, 2023
Algoma

Algoma Steel installs first structural columns for electric arc steel shop

February 17, 2023
Aria Development

Aria Development Group and Wexford Capital sell condo development site for$41.5 Million in Surfside, Florida

February 10, 2023
Mace

Mace Consult appoints Priya Jain to lead new phase of growth in the Americas

February 9, 2023
Construct America Magazine
Wednesday, March 22, 2023
Media Pack
Advertise
  • Development & Infrastructure
    • Commercial & Industrial
    • Residential
    • Government & Public Sector
    • Infrastructure & Energy
  • Planning & Design
    • Architecture
    • Masterplanning
    • Project Management
    • Restoration & Regeneration
  • Consulting Services
    • Environmental
    • Fire Safety & Prevention
    • Health & Safety
    • Security
  • Material & Resources
    • Building Products, Tools & Plant
    • Fixtures & Fittings
    • Procurement & Systems
    • PPE & Workwear
  • Business & Legal
    • Accreditations
    • Governing Bodies
    • Insurance
    • Legal
  • Recruitment & Training
    • Awards
    • Education & Apprenticeships
    • Employment
    • Management
No Result
View All Result
Construct America Magazine
No Result
View All Result

Growth in construction workloads continues to accelerate with firmly positive expectations

by Lisa Pollinger
August 12, 2021
in Development & Infrastructure
RWES RWES RWES

Growth in construction workloads continues to accelerate with firmly positive expectations : RICS Global Construction Monitor, Q2 2021, U.S.

  • Construction activity is on the rise
  • Materials costs and skill shortages continue to escalate
  • Momentum builds for private construction and public infrastructure

The Q2 2021 Construction Monitor results show activity gaining velocity over the quarter, as all sectors continued to grow at the aggregate level following the pandemic. What’s more, forward-looking indicators strengthened again in Q2, with respondents now anticipating greater momentum coming through for private non-residential and commercial workloads alongside solid growth in infrastructure projects. However, rising cost pressures and skills shortages are becoming more prominent features of the market and could impede activity if they continue to worsen.

YOU MAY ALSO LIKE

Aria Development Group and Wexford Capital sell condo development site for$41.5 Million in Surfside, Florida

Mace Consult appoints Priya Jain to lead new phase of growth in the Americas

Construction activity on the rise

US construction activity has been on a clear upward trend since Q4 of last year. During Q2, sentiment has continued to become even more positive for the future outlook. Driving this pickup, respondents across the US cited positive growth in workloads across all sectors, with the US leading the region overall in outlook. In particular, infrastructure showed a drastic improvement in sentiment since last quarter from neutral to overwhelmingly positive, while private commercial construction turned around from firmly negative to highly positive. The change in outlook has been drastic.

Looking ahead, 12-month expectations point to solid growth in construction output throughout the region in aggregate across all sectors covered. Furthermore, employment prospects within the industry appear to be strengthening, with 44% more survey participants now anticipating an increase in headcounts over the coming year. Likewise, contributors foresee a more positive trend in profit margins coming through.

Pressure on material costs and skill shortages escalating

In keeping with feedback from the rest of the world, an increasing share of respondents point to the

cost of materials as a constraint on activity at the present time, with 86% drawing attention to this issue. Alongside this, shortages in labor and skills are also key challenges, particularly in the US, with more than three quarters of respondents reporting a shortfall in these areas (much higher than the global average). A strong majority of respondents report the most acute shortfall to be across skilled trades, while around half cite a lack of quantity surveyors and managers.

Tender price forecasts upgraded but still outstripped by cost projections

Across the Americas in aggregate, tender price forecasts went slightly up in Q2, but costs are now also forecast to rise at a sharper pace than previously predicted. Total construction costs are now seen increasing by 9%, with material costs set to drive the bulk of this rise and labor costs likely to contribute. In fact, overall construction cost forecasts are most elevated in the Americas compared to all other world regions 

Simon Rubinsohn, RICS Chief Economist, noted, “The US construction industry does now appear in full recovery mode according to the Q2 RICS Construction Monitor. Although the private residential sector has been leading the way so far this year, the latest feedback suggests the upturn in workloads is beginning to broaden out. Looking forward, infrastructure is viewed as likely to be the most buoyant area of activity underpinned by the huge Federal stimulus program. This is likely to be accompanied by a significant jump in headcount as the industry gears up to meet the higher level of demand.

“That said, shortages of labor in general and of specific skills in particular comes through loud and clear in the survey with both being reflected in expectations for higher wage costs. This coupled with the ongoing issues around the sourcing and pricing of building materials suggests that the hoped for recovery in profitability, signaled by contributors to the survey, may take a little longer than envisioned to materialize.


Construct America Magazine | The Home of Construction

Tags: construction
ShareTweetShare

Search

No Result
View All Result

Recent News

Acrow

Modular steel detour bridges from Acrow lessen impact of multi-year interstate renovation in Massachusetts

March 16, 2023
Daltile

Daltile launches “Quick-Ship” commercial tile

March 13, 2023
CarbonBuilt

4 Corners Carbon Coalition funds first-of-its-kind project to turn air into concrete at scale

March 7, 2023

Latest Issue…

Business-to-business trade journal covering major construction industry news within the United States of America, bringing you the most breaking and innovative news stories from coast to coast.

Recent News

  • Modular steel detour bridges from Acrow lessen impact of multi-year interstate renovation in Massachusetts
  • Daltile launches “Quick-Ship” commercial tile
  • 4 Corners Carbon Coalition funds first-of-its-kind project to turn air into concrete at scale

Construct America Magazine

Zohar Media Corp.

433 Broadway, Suite 605, New York 10013

press@construct-america.com

editorial@construct-america.com

(+1) 929-506-4972

  • About
  • Media Pack
  • Privacy Policy
  • PublishingHub
  • Contact Us

© 2022 Construct America Magazine | The Home of Construction Industry News.

No Result
View All Result
  • Home
  • Development & Infrastructure
    • Commercial & Industrial
    • Residential
    • Government & Public Sector
    • Infrastructure & Energy
  • Planning & Design
    • Architecture
    • Masterplanning
    • Project Management
    • Restoration & Regeneration
  • Consulting Services
    • Environmental
    • Fire Safety & Prevention
    • Health & Safety
    • Security
  • Material & Resources
    • Building Products, Tools & Plant
    • Fixtures & Fittings
    • Procurement & Systems
    • PPE & Workwear
  • Business & Legal
    • Accreditations
    • Governing Bodies
    • Insurance
    • Legal
  • Recruitment & Training
    • Awards
    • Education & Apprenticeships
    • Employment
    • Management
  • Latest Issue
  • Media Pack
  • Contact

© 2022 Construct America Magazine | The Home of Construction Industry News.

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “ACCEPT”, you consent to the use of ALL the cookies.
Do not sell my personal information.
Cookie settingsACCEPT
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT