Growth in the US construction market is set to continue in 2019, according to a report from international contractor, Mace.
The year 2018 saw a rapid increase in construction growth across the US, with the residential sector a key driver of the pick-up, with low borrowing costs and ongoing wage growth continuing to support demand for additional housing.
In 2018 it is estimated that the US residential sector grew by 4.3%, with non-residential construction growing by 0.9%.
Since President Trump’s election, infrastructure investment has been a hot topic, with airports, roadways and bridges in need of a major overhaul.
A draft investment plan issued by the current administration in February lost momentum; however now the mid-terms have concluded there will likely be a renewed focus leading into the next Presidential Election in 2020.
It is predicted that tariffs introduced on steel and aluminium, combined with a shortage of available skilled labour, will have a significant impact on construction pricing. Steel prices have increased between 30-50% since tariffs began.
James Harrison, operations director for Mace in North America, said, “Material tariffs and a labour market creaking at the seams will drive an increase in 2019 prices, with large contractors becoming increasingly selective both how and what they decide to bid.”