Construction Industry Will Face Headwinds & Tremendous Opportunities in 2022

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The US construction industry will face sizable challenges in 2022 but also significant opportunities, according to industry analysts.

"Finding skilled workers and supply chain disruptions are construction executives’ two biggest concerns," said James Heron, national sales manager for the Wells Fargo Equipment Finance Construction Group. "However, in this rapidly changing environment, the passing of the new Infrastructure bill and historically low interest rates will create new opportunities."

Anirban Basu, chief economist for Associated Builders and Contractors, agrees that the construction outlook for 2022 is positive, but the industry will face challenges in labor and supply shortages.

Basu says the impacts of the Infrastructure Investment and Jobs Act won’t be as immediate as the 2009 infrastructure package, which was focused more on shovel-ready projects to kickstart the economy; but he expects projects from the new infrastructure package to be released in the third and fourth quarters of 2022.

Basu notes:

• Skyrocketing home prices may also have a positive impact on the construction industry. Local governments drive much of their revenue from property taxes, and home re-assessments will mean more tax base for many communities.
• Much of the money for government construction included in the American Rescue Plan has yet to be spent.
• The infrastructure law will generate additional state and local spending on construction, including school construction, which stands to be one of the big winners.