Annual NC Construction Conference in Raleigh Features Outlook from AGCA Chief Economist
While contractors are optimistic about the future and an economic recovery should continue, the construction industry should expect long-term challenges in finding workers.
“Construction employment has stalled in North Carolina due to the labor shortage. Nationally, the number of construction job openings is exceeding new hires and contractors are paying a wage premium for workers,” said Ken Simonson, Chief Economist for AGC of America.
Simonson’s comments came during his 16th consecutive yearly presentation to the NC Annual Construction Conference, held March 7 at the Jane S. McKimmon Center in Raleigh. His comments were made to about 1,200 participants.
Some highlights of Simonson’s presentation included:
- Economic recovery should continue but risk of recession remains
- Single-family homebuilding should continue recovering
- Multifamily, warehouse, retail, office, lodging: slowdown likely due to rising rates
- Data center and manufacturing construction should remain hot
- Infrastructure Investment & Jobs Act, “Chips” Act, Inflation Reduction Act will give major boost to infrastructure, manufacturing, and power construction. BUT
- Money will be slow to turn into construction awards and spending
- Buy America(n), labor, environmental strings may tie up project starts for years
- Materials costs, lead times: mostly better except electrical gear, some electronics
- Labor availability has resumed being the #1 challenge for many contractors
“As always, the Conference was great, as was the information from Ken Simonson,” said Carolinas AGC (CAGC) Betsy Bailey, CAE, North Carolina Government Relations and Building Division Director.
Download and view Ken Simonson’s complete presentation.
