The construction industry in the United States is expected to experience a modest increase in public construction in the near future, followed by a stronger increase in the middle of the decade. Non-residential construction is likely to contract due to higher interest rates and a decrease in spending. Kate Hardin, executive director of the Deloitte Energy and Industry Research Center, predicts that residential and commercial construction will be the most affected and will be significantly weaker than expected. The macroeconomic factors that will most influence non-residential construction are high and rising interest rates, as well as a decrease in total spending due to a recession.
Depending on the complexity of a project, rehabilitation work could be a challenge for contractors who traditionally focused on new construction. As construction companies and other industry stakeholders continue to adopt technology, cybercriminals have followed suit. Construction in the public sector, which represents approximately two-thirds of the size of private non-residential construction, has begun to increase after the decline of the pandemic. Branch warns companies not to lay off too many workers in the first half of the year.
While growth will remain strong, investment dollars for multifamily construction projects tend to run out when the economy slows. This may require remodeling existing facilities or, in rare cases, completely new construction. The Buy America Act requires construction materials and manufactured products manufactured in the United States, which could be difficult to enforce. On the other hand, residential construction companies are relatively more pessimistic about the industry's outlook for next year compared to other segments.
The smaller sectors of private non-residential construction have held up slightly better than the aggregated category.