The COVID-19 pandemic accelerated trends toward e-commerce and remote work in the national construction market, and this has translated into a decline in the commercial sector and growth in the residential sector.

Still, the overall construction market is set to contract by about 6% this year, as economic uncertainty has made owners reluctant to begin new projects. A notable exception to this is the manufacturing sector, which should see 4% growth as manufacturers examine moving back to the US.

Tighter monetary policy from the Federal Reserve has brought on a deep housing recession in many markets. The first half of the year saw enough growth to keep year-over-year changes positive. At the same time, we expect a few trends to shift spending around the market. The retail volume would shift into warehouses, and offices would shift to residential and data centers. The new Inflation Reduction Act sets aside billions of dollars to revitalize American infrastructure, which should translate into a bump in infrastructure spending in the coming years.