In the USA, the year and half US manufacturing construction boom is starting to see some signs of a gradual slowdown. However, there still are a good number of EV manufacturing and battery plants together with computer FAB facilities and call centers in the development pipeline that will keep this construction sector reasonably busy for the next 12 to 18 months.
The residential market (apartments, single family homes & the like) is starting to experience a slowdown in activity due to high mortgage rates and a wait and see attitude related to the US General Election that will take place in November. However, the US Federal Reserve recently eased monetary / mortgage policy, the demand for new home construction will hopefully increase.
US Contractors are still having difficulty in hiring skilled construction workers in most regions of the country.
Severe shortages of skilled construction labor such as Pipefitters, Welders, Electricians and Instrumentation technicians continue to be a serious problem to the US construction industry.

The 2024 US / Canadian / Mexico Construction market is estimated to be in the $3.05 to $3.10 trillion range, an increase of 2.9% from 2023 (Year to Year), still the world’s largest construction market. In the USA, construction cost increases have returned to more customary levels since the conclusion of COVID in the range of 2.6% to 3.3%.

The US construction industry continues to face supply chain challenges, price spikes, longer delivery times for components such as MCC / switchgear, modules / specialized skids- pre-assemblies, large compressors, heat exchangers, certain key instrument devices, larger pumps, fabricated process piping, specialized pharmaceutical production equipment, HVAC / HEPA / equipment and filters.

US construction inflation for materials & labor will continue to remain in the 2.6% to 3.4% range for the next 3 to 6 months until the conclusion of the US General Election in November. Lower interest / borrowing rates will be a positive development for the US Commercial / Housing sector.

US Construction material inflation in the 3-year period from 2021 to 2024 has increased by as much as 24%, with a lot of the increase attributable to COVID and the follow-on supply chain issues and material shortages. In the period 06/2021 to 09/2024, these construction materials have increased by the following percentages. Overall construction material prices have remained static in North America for the last 6 months with a few exceptions which is good news for the industry. Construction Material Price Increases 06/2021 to 09/2024:

• Ready Mixed Concrete: 14% to 19%
• Pre-Cast Concrete: 12% to 16%
• Facing Bricks: 11% to 17%
• Copper Pipe / Cable: 16% to 19%
• Roofing / EPCM Products: 14% to 20%
• Timber / Plywood Products: 12% to 15%
• Rebar / Structural Steel: 19% to 27%
• Gypsum Wallboard: 17% to 22%
• HVAC / Plumbing Fixtures: 12% to 18%
• Process Equipment / Piping: 10% to 19%
• Electrical Equipment / Fixtures: 16% to 23%
• Paint / Coatings: 14% to 17%

USA Real GDP growth forecasts for 2024 is in the 2.8% to 3.3% range, not too bad considering all the events and challenges the US economy has faced.

More than 1.5 to 3 million skilled construction workers (Electricians, Welders, Plumbers, Carpenters & Masons) will be required across the USA, Canada & Mexico in the next 5 to 10 years to replace the current aging & retiring workforce and to also augment the need for new skilled workers for the anticipated future growth needs of the 3 country’s construction sectors.

Canada’s construction market is projected to grow to C$255 billion by the end of 2024 and increase to C$263 in 2025. Canada’s construction activity in the 3rd Q of 2024 is forecast to expand marginally by 1.6% to 2.6% over 2023 levels. Construction material costs are set to increase by 2.6% to 3.4% and construction labor will see an increase of 2.6% in 2024 from 2023 levels.

Some of Canada’s eastern provinces are investing millions of Canadian $’s in clean energy / renewable battery storage facilities, green hydrogen plants & hydroelectric facilities in Ontario, Quebec, Nova Scotia & Newfoundland.

The Mexican construction sector is forecast to grow in 2024 and 2025 due a number of Government sponsored infrastructure projects and a pipeline of commercial and industrial projects. Mexico’s GDP will be in the 2.3% to 2.7% range going into 2024 4th Q. Construction related inflation is currently 4.6% to 5.1% and construction unemployment is 2.8% to 3.4%, which is a significant improvement from 12 months back.