Prairie Industry Perspective - Construction - August 2022

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Even amid ongoing materials price increases, supply chain issues and labor shortages, the construction industry has managed to recover strongly following the economic fallout surrounding the COVID-19 pandemic. Depending on the specific sector, experts have mixed expectations for the rest of 2022 and into 2023. Due to increasing interest rates, the strong growth registered by the residential sector in 2021 is currently experiencing a slowdown, and this will likely continue in the near future. Meanwhile, the nonresidential and nonbuilding sectors are experiencing recovery in 2022 due to strong backlogs and funding from the Infrastructure Investment and Jobs Act (“IIJA”). However, analysts caution that inflationary pressures and a possible recession could constrain growth in all three sectors as 2022 progresses.

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