Q3

2022

the look
ahead

The third quarter of 2022 failed to yield any concrete indicators as to how soon we can expect rate hikes to stabilize inflation or how long it will take us to dig out of an impending recession.

Industrial & Manufacturing Trends, The Fed and Energy Crisis

National Market Overview

The third quarter of 2022 failed to yield any concrete indicators as to how soon we can expect rate hikes to stabilize inflation or how long it will take us to dig out of an impending recession. It seems the good news of a strong labor market is now the bad news of persistent inflation and experts are taking a day-to-day approach when casting predictions. In this issue, we feature a look at the trends driving construction in the Industrial sector as well as the extreme growth manufacturing has experienced. We also dive into the structure of the Federal Reserve Bank, how rates are controlled, the factors contributing to the global energy crisis, and provide our thoughts as to the onset and duration of the predicted recession.

Construction
Indicators

The growth of aggregate input prices is expected to moderate until demand strengthens, bringing pricing patterns back to more familiar levels.

“Dollars spent on construction of new manufacturing facilities in the U.S. has soared 116% over the past year, dwarfing 10% gain on all building projects combined.”

Steve Haglund

Senior Preconstruction & Estimating Manager

Industrial & Manufacturing Spotlight

For the past eight years, JE Dunn has had a team focused on building industrial facilities. They have seen a significant uptick in auto and battery manufacturing in the past three years and as the demand for online ordering and delivery has skyrocketed, so has the need for warehouses and distribution centers. These increased demands, paired with a struggling supply chain have resulted in the busiest industrial sector on record. In this spotlight, Steve Haglund, Senior Preconstruction and Estimating Manager for JE Dunn’s industrial team, discusses current trends and the best ways to navigate challenges.

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Insights

Recession Watch 2022

Is this a recession? This commonly asked question doesn’t have a simple yes or no answer as it is subject to “expert opinion.” It is important to note that we have had fewer than 20 recessions in the post-WWII era. They are a natural part of a healthy economy.

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Insights

The Energy Crisis

The energy situation in Europe reads like many other explanations of what is happening in the global economy, and it goes like this: COVID-19 shutdowns stalled production, demand outpaced supply when production was reinstated, and then Russia invaded Ukraine.

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Insights

The Federal Reserve

The term “monetary policy” refers to the actions undertaken by the Federal Reserve (the Fed) to control the availability and cost of money and credit in order to promote national economic goals.<sup>1</sup> With our current economic volatility, the levers typically used by the Fed to influence our economy, are under close watch.

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