The 2021 Outlook for the Construction Industry

The economic outlook for the spray foam and polyurea industries often takes its cues from the construction industry. Economy experts say that there is a pent up demand for construction projects from 2020 that could come to fruition in 2021. Read on to find out which segments of the construction industry are expected to prosper and boom.

The construction industry took a hit in 2020. 2021 promises to be an improvement, according to economic experts, as Covid-19 vaccines become widely available. Construction projects, that have been tabled due to economic uncertainty, should be coming back strong—to bring existing projects to completion and begin new projects that were previously put on hold. This will spur a high demand for subcontractors, so much so that contractors may be in competition for subs as a resource. As most contractors have been well aware, there is a shortage of qualified workers. Contractors who are able to jump on board early for hiring subs, will be ahead of the game. Contractors who are unable to secure skilled man-power early, will again experience a labor shortage. Consequently, some contractors will end up doing their own work, with in-house workers, where labor shortages persist. Experienced estimators and supervisors will be in high demand, while the need for entry-level and less skilled workers will diminish.

Infrastructure Projects on the Horizon

We should be able to look forward to more infrastructure and building projects as soon as congress approves a multi-trillion dollar bill for these projects. These infrastructure projects include transportation, flood control, waterfronts, clean drinking water, aviation, school construction, and renewable energy.

Supply-Chain Warehousing and Health Care Structures Boom

E-commerce supply-chains will continue to boom. Therefore, we are seeing a surge in the development and construction of warehouses and distribution centers. E-commerce giants will spur a high demand for more warehousing, distribution centers and data centers. The need for more business offices and office renovations will follow suit. Health care construction, such as hospitals are increasing due to the demand for more hospital space. Commercial building starts are expected to increase 5% in 2021.

Housing Demands

2020 brought a loss of 14%.for the construction industry. According to the 2021 Dodge Reports, the construction industry will increase by 4%, which translates into $771 billion dollars. Business and consumer confidence is expected to improve. Starts for residential building is expected to increase 5% in 2021. Non-residential building is expected to gain 3%. Historically low mortgage rates will have a positive impact on higher home construction demands. Retail and hotel construction is expected to lag.

2021 market indicate a 7% increase for single family housing starts. This is in part due to the preference of homeowners to live in less densely populated areas. Large metropolitan areas, with multi-family housing, will see a decline in housing demands.