Economic headwinds threaten construction’s spring recovery

Construction and engineering spending reached $1.57 trillion in July 2021, according to Deloitte, and revenue growth will likely accelerate in 2022. In a survey of over 500 U.S. executives and other senior leaders in the field, Deloitte also found that 92% characterize their business outlook as somewhat or very positive, 23% higher than the previous year. Supply chain constraints and rising costs, in some cases exacerbated by pent-up COVID demand, are making sourcing materials and sticking to budgets more difficult. “It just very hard for an industry that typically operates on a small margin and has to go through competitive bidding process to accurately predict what they’re going to be paying or, as important, when those materials are going to show up,” said Brian Turmail, vice president of public affairs and strategic initiatives at the Associated General Contractors of America. “It’s a really challenging time for what was already a challenging time.”

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