Construction Industry Continues to Face Labor Shortages, Supply Chain Concerns, and Growth in Some Industries, Report Says
DPR Construction, one of the nation’s top technical builders, released its Q4 Market Conditions Report revealing that construction and real estate industries are feeling the effects of ongoing economic changes, bringing a mix of both challenges and opportunities. Additional highlights include:
Economy – Economic conditions post-elections will significantly impact financing options for projects. A stable economy could encourage investment, while uncertainty might cause hesitation.
Labor Landscape – 77 percent of contractors report increased difficulty filling craft positions in 2024 compared to 2023. Ongoing labor shortages highlight the need for investment in training and development.
Supply Chain – Ongoing Middle East conflicts and geopolitical tensions with China, Russia, and Iran as well as drought and extreme weather events continue to impact global supply chains. The Taiwan Strait's instability could also impact global freight rates and the semiconductor supply chain.
Market-Specific Insights:
Advanced Tech - Growth in advanced manufacturing and mission-critical sectors, driven by demand for high-tech products and digital infrastructure.
Life Sciences – Growth driven by Big Pharma, with challenges in smaller firms and R&D construction.
Healthcare – Stabilizing with improved access to capital and refinancing options.
Commercial – High vacancy rates with potential recovery in 2025, focus on diversifying portfolios.
Higher Education – Positive trends in construction spending and enrollment, with robust investment in interdisciplinary research.
The report – published prior to the presidential election -- further highlights key trends across the broader construction industry.
For more information, visit http://www.dpr.com.
About the Author
Michael Roth
Editor
Michael Roth has covered the equipment rental industry full time for RER since 1989 and has served as the magazine’s editor in chief since 1994. He has nearly 30 years experience as a professional journalist. Roth has visited hundreds of rental centers and industry manufacturers, written hundreds of feature stories for RER and thousands of news stories for the magazine and its electronic newsletter RER Reports. Roth has interviewed leading executives for most of the industry’s largest rental companies and manufacturers as well as hundreds of smaller independent companies. He has visited with and reported on rental companies and manufacturers in Europe, Central America and Asia as well as Mexico, Canada and the United States. Roth was co-founder of RER Reports, the industry’s first weekly newsletter, which began as a fax newsletter in 1996, and later became an online newsletter. Roth has spoken at conventions sponsored by the American Rental Association, Associated Equipment Distributors, California Rental Association and other industry events and has spoken before industry groups in several countries. He lives and works in Los Angeles when he’s not traveling to cover industry events.