Analysis Points To Positive Signs in Construction Sector

Analysis Points To Positive Signs in Construction Sector

In North Carolina, the construction sector has experienced a notable decline in employment, contrary to the national trend of increasing construction employment. The state’s Department of Commerce identifies construction as a crucial economic indicator, historically showing declines or flattening growth before recessions. While North Carolina’s construction sector faced a significant employment drop in 2023, recent data indicates a rebound in October and November, although still below September 2022 levels. Nationally, construction employment has steadily increased, reaching about 3% higher through November.

Despite concerns about the state’s construction sector, the analysis suggests a more optimistic outlook. The growth in construction spending nationwide and North Carolina’s attractiveness to new residents and businesses contribute to this positive narrative.

Analysis Points To Positive Signs in Construction Sector

The rebound is attributed to increased federal spending on infrastructure, microchips, and electrification, providing ample work for the construction sector.

Projections for the coming decade anticipate rising construction employment. The Commerce Department’s 2021-30 employment projections indicate that construction jobs in North Carolina could reach 259,482 by 2030, with an annual growth rate of 0.9%, representing an increase of about 21,000 jobs from 2021.

The Associated General Contractors of America’s 2024 Construction Industry Hiring and Business Outlook Survey conducted in North Carolina reveals positive expectations. Contractors predict the value of projects to remain the same or increase compared to the previous year.

Despite challenges such as rising costs, interest rates, and reduced funding, over three-quarters of surveyed contractors plan to add employees. Worker quality, rising labor costs, and a shortage of workers or subcontractors are cited as significant concerns, emphasizing the complex landscape for the construction industry in the coming year.

Lisa Carter

Hi, I'm Lisa, a seasoned software engineer and technology enthusiast dedicated to demystifying complex technical concepts and bringing innovative solutions to the forefront. With a Master's degree in Computer Science from MIT, I have honed a deep understanding of cutting-edge technologies and their practical applications.

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