Overall Q3 2021 forecast Summary
Provided by Patrick Templeton, Associate Director | Cumming Corp.
Moving into Q3 of 2021, the commercial construction industry is experiencing high volumes with additional growing pains in skilled labor, sharp raw material cost increases, and inflation. The current short-term pain is within material cost increase and inflation. There is a requirement to engage and educate the principal client on these factors which in turn can unfortunately increase the project budget into uneconomical ranges. By understanding that these are short-term problems that will see a correction within the calendar year, usually the project will continue.
Long-term commercial construction industry forecasts that the shortage in skilled labor, for the industry, will be problematic. According to the US Bureau of Labor Statistics, the average age for construction workers is 43.9 years with limited next generation moving into set industry. This will continue to cause project cost increases due to limited supply and escalated demand. Secondly, the commercial industry can only plateau in construction volume thus prolonging future projects in the market space.
Below from Cumming Corporation, economist insights illustrate the concern for skilled trades shortage.
Understanding the current short-term and long-term industry problems will provide correct decision-making information for the personnel involved within the set industry.
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