After years of working during a pandemic and its aftereffects, like supply chain delays and inflation, the construction industry is finally able to see a light at the end of the tunnel. For 2023, there are a lot of positives. Reports show:
- Rising construction costs should stabilize at 2%-4% in 2023 and 2024, on par with historical averages
- Supply chain-related disruptions are expected to ease
- Construction demands are expected to remain healthy for the near term, due to the demand for new construction and government infrastructure projects
- US multifamily performance is strong and demand continues to exceed supply
The biggest challenges for the construction industry in 2023 are all centered around labor. According to LinkedIn, labor challenges for 2023 include a smaller talent pool, an aging workforce and strong competition for employees for employees.
The construction industry has been dealing with serious labor issues since the pandemic. Currently, 92% of contractors report moderate to high levels of difficulty finding skilled workers.