As we wind down 2022, our industry is looking ahead to what might come in the new year. We may not have a crystal ball, but experts expect many external factors will impact the first half of 2023, including:
1 – Economic Inflation
Inflation will be a driving force for the U.S. economy next year. The good news? It’s expected to have a relatively mild impact on the construction industry. Why? A strong banking system and a still-undersupplied housing market.
2 – Recession Reality
Given that inflation is a sure thing, it’s no surprise that a recession is more than likely. But as with the impact of inflation overall, the construction industry shouldn’t expect a major change if a full-blown recession becomes a reality.
Industry experts predict that residential and commercial construction will be impacted the most, while healthcare, manufacturing and infrastructure are expected to weather much better.
3 – Industry Stagnation
Though we shouldn’t expect a radical resurgence of any kind. According to Equipment World, total construction starts rose 17% in 2022 but are expected to remain flat in 2023. It’s no surprise, given that we’ve been at a 15-year high in the Dodge Momentum Index. Rather, it’s reassuring that developers are continuing to push projects forward regardless of an expected economy slow-down.
All things considered, this is an optimistic forecast for 2023, compared to other industries. Expect to see a startup on projects that have been sitting in the planning phase, which will balance out any drops in new initiatives.
4 – Material Prices
After experiencing all-time highs for cost of goods, experts believe that 2023 will bring relief to our wallets. We’re already starting to see prices lower, which will positively impact every project in the pipeline.
These four factors are outside of our control. They are simply a reality that we will face in the new year. The best strategy is to be prepared, and plan for the unexpected. But what is within our control? What can we, as an industry, do to positively impact 2023?
Recruit talented individuals to our industry.
Construction is in-demand, but without trained workers, our communities’ infrastructure and building goals will be out for 2023. It will be up to each of us to fill the skilled labor gap and support our fast-paced, growing industry. Will you join us in our mission of recruiting people into the industry by showing them it is a rewarding and valuable career choice? Show your commitment on social by sharing this post with #IRecruitConstruction #2023Resolution.