First Quarter Pricing and Trends Influence Outlook
The anticipation of a slowly stabilizing post-pandemic recovery has encountered additional unforeseen hindrances with the war in Ukraine, as well as continued rising inflation. Market volatility has rippled across the entire construction industry. This can be seen through subcontractors and suppliers’ inability to hold pricing and increases in fuel surcharges. Despite new challenges faced by the industry, economists suggest there is still plenty of buying power and demand for construction. In particular, the multi-family sector saw fairly strong growth throughout the first quarter of 2022, and commercial/industrial sectors saw moderate growth as well.
Let’s look at how the market has responded to the market volatility over the last quarter.