Weakened Economy, Higher Borrowing Costs Effect Construction Industry, Reports Marcum Survey

The Marcum Commercial Construction Index for the second quarter of 2022 reports that the construction industry continues to face rising costs and shortages of both labor and materials, but now also must contend with a weakening economy and elevated borrowing costs.  

Notably, the residential sector has weakened significantly, while the outlook remains dicey for the nonresidential sector.

The index is produced by Marcum’s National Construction Services group.

As of March, construction employment surpassed pre-pandemic levels, but the industry continues to grapple with unprecedented labor shortages.

Despite a somewhat bleak outlook, the Marcum index points to one segment that remains an outperformer. Spending on manufacturing-related construction is up 27.8% since the cyclical low observed in February 2021 and 20.3% over the past year. 

For more information, visit marcumllp.com.