Overall, 2021 is a good year for the commercial construction sector. General construction costs rose, with housing construction rising, but non-housing commercial construction declining for the second year in a row.
Construction companies are also facing persistent shortages of staff and problems with the timely delivery of building materials due to supply problems and rising material prices. They should also fight the ongoing coronavirus pandemic, first with the Delta variant earlier in the year and then with the Omicron variant, which seems to be more contagious, even among those previously vaccinated.
So what can we expect in 2022 in commercial construction? Here are five trends we should keep in mind early in the year.
Progress In Construction
Construction spending to November 2021 was $ 1.46 trillion, which set another record for planned construction this year. If the final numbers are in, the industry predicts that the amount for 2021 will be almost $ 1.57 trillion. And which could increase to 6.8% by 2020.
Build-in-place is the estimated total dollar amount of construction work in the United States. And it compiled each month in the United States Census Bureau.
Non-residential construction is expected to return to normal after two consecutive years of declining construction spending due to a pandemic and an increase of 5.6% to $ 837 billion in 2022. Housing spending is not expected to rise in 2021 but is 7.7% stronger than last year. The industry expects the residential real estate investment to increase to $ 836.8 billion by 2022, roughly equivalent to net housing expenditures.
Some of the main areas for building growth set for 2022 will come from infrastructure spending.
After years of interim measures and short-term spending bills, Congress has finally billed long-term infrastructure with a $ 1.2 trillion investment in infrastructure and jobs law.
Over the next five years, commercial construction will spend $ 550 billion on new federal investments to build new infrastructure. And make the necessary repairs to existing infrastructure. The bill calls for $ 110 billion in investment in road, bridge, and infrastructure projects. Moreover, there are $ 40 billion in bridge repair and replacement and $ 39 billion in public transport. Then, $ 66 billion in rail and freight and $ 65 billion in broadband. Finally, $ 65 billion to renew the energy network and $ 55 billion to improve water infrastructure.
In addition to carrying out much repairs and rehabilitating our country’s crumbling infrastructure, this industry expects the bill to be a significant source of jobs for the construction sector in the next two years. The big question is, where do these workers come from?