This was reported in a recent article by National Mortgage News. According to the article, the construction industry’s output has grown for three months in a row, however the overall growth rate is still well below the annual average experienced in the last five years.
The article also outlines many of the issues that the construction industry has been facing over the past year. These include declines in both residential and nonresidential construction, an overall decrease in construction investment, the challenges posed by labor shortages, and a decrease in new housing starts. The coronavirus pandemic has only exacerbated these problems, as stricter regulations have been put in place which have made it difficult for builders to access materials and labour.
Despite these difficulties, there are some signs of optimism in the construction industry. The article notes that there have been increases in construction jobs in July and August, with total employment rising slightly in September as well. Additionally, there is hope that the construction industry can benefit from new opportunities as part of the stimulus plan. In particular, there is a focus on investments in infrastructure and public works projects, which have been identified as areas for potential expansion.
Despite these encouraging signs, the outlook for construction is still uncertain. As the article points out, the industry faces an uphill battle as it attempts to recover. With increasing costs, labor shortages, and the ongoing effects of the pandemic, it may take some time before the construction industry can truly get back on track.
The construction industry has seen a recent rise in activity after months of decline, but according to the National Mortgage News, the uptick is not enough to make up for the losses. The article details the factors that have contributed to the slowdown in construction such as a decline in residential and nonresidential construction, a decrease in construction investment, labor shortages, and a drop in new housing starts. Despite these difficulties, some signs of optimism can be seen such as an increase in construction jobs, the potential for increased investment through the stimulus plan, and the focus on infrastructure and public works. Nevertheless, the industry still faces an uphill battle in its recovery, as costs, labor shortages, and the effects of the pandemic continue to impede progress.
This article was contributed on Nov 22, 2023
