Gilbane Building Company Releases Q2 2024 Market Conditions Report

Gilbane Building Company released its Q2 2024 Market Conditions Report. The quarterly report provides a national macroeconomic view of the overall economy and its impacts on the U.S. construction industry, focusing on market-driven data, end-to-end supply chain constraints, equipment and material availability, costs and risk mitigation strategies.

This quarter, the report added two new features: a regional overview of market conditions as reported by Gilbane’s preconstruction teams across the country and a supply chain spotlight feature, focused on the impact of disruptions to global ocean shipping routes on U.S. construction supply chains.

Q2 construction market overview takeaways include:

• Following strong industry performance in 2023, sentiment has improved for opportunities and growth in 2024. Nonresidential construction made up 56% of total construction spending in 2023, and nonresidential construction spending grew 20% overall.
• FMI forecasts that total engineering and construction spending in the U.S. will end 2024 up 5% from 2023. Total construction spending rose 7% in 2023 from 2022, according to the U.S. Census Bureau.
• The fastest-growing nonresidential construction segments were manufacturing (71%), sewage and waste disposal (27%), conservation and development (24%), lodging (20%) and highway and street (18%). Meanwhile, residential construction spending fell 6% overall.
• After a period of decline in 2023, building material prices have been rising in 2024. Strong backlog and volatility in the supply chains of some commodities, specifically in the electrical category, remain a risk to cost inflation for those products and support continued lead time challenges.

Click here to read the report in its entirety.