Construction Market Report Winter 2023
Major indicators are pointing towards a slower construction market in 2023. Commodity pricing is leveling after 2 years of hyper inflation. Architectural billings are down. The construction confidence index is down. Wage increases are getting closer to normal, however labor supply is still short.
The overall construction market is expected to reduce by 6% this year, but there is a shift in sector spending. Warehousing, Data Centers, and Infrastructure volumes are expected to grow, while Residential and Commercial will see lower volumes in 2023. Most economists are predicting a recession, however some feel we may have a “Soft Landing” and avoid a recession. Refer to Goldman Sacks report HERE for more details.
Despite improved commodity pricing, leveling of wages, and a slightly lower construction volume for the year, overall pricing is not expected to go down. We anticipate a 1/2% – 3/4% per month escalation rate, much lower than the previous 6 quarters.
Download the full Winter 2023 Market Conditions Report below for more insights and detailed information on today’s construction market.
Construction Market Report - Winter 2023
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