Though the U.S. has been relatively strong even with global uncertainty in Q1, construction will proceed with caution throughout 2016 into 2017.
- More strategic construction investments until we see how the 2016 election affects the economy and regulations.
- Materials prices will continue to drop into 2016 as the economy slows for overseas materials manufacturers. Expect some stability in materials in 2017. However, proceed with caution.
- Wages will continue to drive construction costs with a shortage of trained workers.
- Construction will grow at a faster rate than the overall economy with growing profit margins and demand from differentiated markets.
Even though developers and occupiers are proceeding with caution, they continue to build. There is ample opportunity to assess development strategy since the construction industry lags the broader economy by one to two years. The global plateau won’t fully materialize in U.S. construction until at least 2017.
