Q3

2024

the look
ahead

The construction industry faces a temporary slowdown amid economic uncertainty and delayed projects, but a post-election recovery is expected, supported by anticipated interest rate cuts, cooling inflation, and potential demand growth by 2025.
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Prefabrication: Maximizing Certainty, Minimizing Risk

National Market Overview

The construction industry experienced a slower third quarter, even as the economy posted unexpectedly robust GDP growth. Many firms find themselves in a holding pattern, with significant projects and spending initiatives on hold until after the election.

Looking ahead, a slight softening in GDP is anticipated in the coming months. However, a resurgence in growth is expected to follow, coinciding with further interest rate cuts. This should lead to a strengthening in sectors sensitive to interest rates, which will eventually benefit the broader economy. Additionally, a cooling labor market and a rise in the unemployment rate are anticipated as the effects of current monetary policy continue to play out.

For the construction sector, this translates to continued leveling of momentum until demand begins to pick up again in 2025. In the near term, the growth of aggregate input prices is expected to moderate until demand strengthens, bringing pricing patterns back to more familiar levels.

Overall, while the current landscape presents challenges, signs of potential recovery are on the horizon as the market adjusts to evolving economic conditions.

Construction
Indicators

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

“As a proactive approach to risk management, prefabrication enhances project predictability and quality, allowing teams to navigate the complexities of construction with greater confidence.”

Stacy Scopano
Vice President
National Prefabrication & Manufacturing Director

Prefabrication Spotlight

This spotlight explores the persistent challenges facing the construction industry, including labor shortages, inflation, and supply chain disruptions. Stacy Scopano, National Director of Prefabrication and Manufacturing, highlights how prefabrication can mitigate these risks by reducing labor needs, ensuring safety and quality, and improving speed to market, ultimately providing greater certainty and efficiency in project outcomes.

Current Events

Sustainability

Prefabricated construction offers a sustainable alternative to traditional building by reducing waste, improving energy efficiency, and enhancing quality control.

Current Events

Worker Safety

The construction industry faces high injury and fatality rates, but modular construction offers a safer alternative by reducing on-site hazards.

Current Events

Freight Considerations

Embracing prefabrication in construction enhances quality, speeds up timelines, and improves safety, yet freight costs—often overlooked—play a critical role in project success.

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