We expect overall construction volume to slightly increase in 2024, as compared with a decrease in 2023.

The residential sector is expected to suffer a decrease of roughly 9% this year, reflecting a marked decline in leading indicators; new privately owned residential building permits authorized in the first four months of 2023 fell by 21% year on year, while new housing starts in the first five months of the year declined by just over 15%. However, non-residential buildings – particularly the infrastructure sector – and energy and utilities have been improving, following weakness in the past few years. Major fiscal stimulus packages such as the IIJA, IRA, and CHIPS Act will be key drivers of construction activity across these sectors.

As of May 2023, the Biden administration had announced over $220 billion in funding under the IIJA, including over 32,000 specific projects and awards. Additionally, the White House reported that as of June 2023, over $491 billion in projects had been announced by private companies under the Manufacturing the Future program, over $255 billion had been announced by the government under the Rebuilding Infrastructure program, and another $76 billion had been announced by the Internet for All program. Therefore, we saw a significant 62% increase in manufacturing construction throughout 2023.