Q4

2024

The Look
Ahead

This report provides a national economic overview, including key trends in the construction industry, and highlights the unique challenges facing semiconductor, data center, and industrial & manufacturing projects. It also covers local market trends and QCIs, along with a feature highlighting JE Dunn’s Advanced Facilities Group and their approach to complex projects.

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Advanced Facilities Group: How JE Dunn Meets Demand on Complex Projects in High-Growth Markets

National Market Overview

The U.S. economy exhibited moderate growth in the fourth quarter of 2024 with a GDP of 2.3%. This performance was primarily fueled by robust consumer spending across both goods and services, alongside a resilient labor market. Inflation continued to show signs of easing, with the core Personal Consumption Expenditures (PCE) measure approaching the target 2% mark, albeit with some fluctuations. This growth outpaced market expectations, demonstrating a healthy economic expansion despite ongoing concerns about potential slowdowns in other sectors.

On the construction front, input price increases were relatively subdued, with the national average rising by just 0.63% from the previous quarter. Most of this increase was driven by labor costs. Material pricing, while showing some volatility, has largely balanced out, with minimal impact on overall costs for the time being. However, concerns about future price instability are becoming more widespread, based on anecdotal evidence. According to our trade sentiment survey, costs remained steady or saw slight increases for most respondents. At the same time, there has been a slowdown in backlog growth for trades across the country, with no noticeable reduction in competition at bid time. This suggests a stable yet competitive business investment environment in the construction sector.

JE Dunn’s economic team is closely monitoring the proposed tariffs announced by the administration and their potential impact on the construction industry. For more information or resources on how these tariffs may affect the industry, please contact your local market leads.

Construction
Indicators

Future price instability concerns are growing, while steady costs, slowing backlog growth, and strong competition indicate a stable yet competitive construction market.

“JE Dunn is driving growth in these advanced manufacturing markets by ensuring quality, safety, and timely delivery. Our approach includes strong trade partner relationships, skilled labor, and a national presence to meet the increasing demands of these sectors.”

Paul Neidlein
Advanced Facilities Group President

Advanced Facilities Group Spotlight

This spotlight examines the unique and complex challenges of working on advanced manufacturing projects amid ongoing supply chain disruptions and labor shortages. Paul Neidlein, Advanced Facilities Group President, explains how JE Dunn tackles these hurdles with innovative solutions, ensuring timely, high-quality results in critical sectors such as semiconductors and data centers.

Insights

AI & Data Center Energy Concerns

The rapid advancement of artificial intelligence (AI) is ushering in a new era of technological innovation. However, this progress comes at a significant cost: energy consumption.

Insights

Semiconductor Supply Chain

The global semiconductor industry is the backbone of modern technology, powering everything from smartphones and automobiles to medical devices and critical infrastructure.

Insights

The Current vs. Future State of Manufacturing

Manufacturing construction activity has grown to unprecedented levels for just over three years now, in part thanks to large doses of government subsidies and political goals that favor domestic expansion in the industry.

Local Market Overviews

Stay informed with what is happening in your local market. Download your localized report now!

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