Our monthly construction industry trend report includes the latest industry data and our insider findings from the award-winning National Business Capital team. With extensive experience in the construction industry since 2007, we are happy to share these findings and expand upon them with our unique expertise.
Our mission is to provide business leaders and decision makers with the necessary information and data to make well-informed decisions in their business operations.
2024 Election x Construction Industry
With election day fast approaching, ConstructionDive.com surveyed each individual’s stance on key construction-related issues. We’ve highlighted some of their takeaways:
| The subject | Trump | Harris |
| Supply Chain | Former President Trump has strongly advocated a focus on domestic manufacturing to remove US reliance on foreign supply chains. He intends to raise prices, as he did in his first term, to make American-made products more attractive. | Like his presidential counterpart, Vice President Harris is also committed to domestic production.
He plans to pick up where President Biden’s CHIPS Act and the Infrastructure Investment and Jobs Act (IIJA) left off by advancing federal programs to develop ports, railroads, etc. |
| Power | Focusing on domestic oil production, Trump aims to roll back government drilling to promote rapid progress. He also plans to roll back Biden-era policies, such as the Affordable Care Act, which included solar and won product tax credits, among other environmental laws. | Harris plans to expand on the Inflation Reduction Act and continue to promote clean energy initiatives, following in President Biden’s footsteps. |
| Work and Workplace | Despite losing union support during his first term, Trump aims to get back on the good side of labor. He sponsored the Labor-Management Collective Bargaining Act of 2024, which gives non-retaliatory bargaining power to workers. And, in line with his other policies, he also intends to deregulate the workplace, as he did when he rolled back OSHA regulations, to encourage less duct tape. | The Biden-Harris administration’s Infrastructure Investment and Jobs Act and the CHIPS Act have created an influx of demand for construction work. Harris, particularly pro-union, promises to support construction unions through the Right to Organize Act and his cooperation with OSHA, which recently unveiled a heat stress program. |
See more of the candidates’ stances on construction-related issues in the Construction Dive article.
October 2024 – Former President Trump has focused on deregulation and domestic manufacturing, while Vice President Harris intends to continue government programs that have supported the construction industry throughout Biden’s tenure. While Trump’s pro-business stance has attracted the business community, including major construction players, the Biden-Harris administration’s success with the CHIPS Act has not been forgotten by the industry.
There are many potential changes in the voting of the construction industry, but we will not see the results of new policies in the short term. Construction companies must continue to push forward, as they have done in the past, to ensure that they are not left behind by the competition.
The Impact of Project Delays on Construction Cash Flows
Strong cash flow powers a growing construction company. Recently, cash flow challenges have persisted throughout the industry for many reasons, especially due to project delays.
| GCPay Research: What are the Common Reasons for Project Delays? |
| 1. Labor Shortage 2. Lack of Essentials 3. Communication challenges |
October 2024 – A study by GCPay found that labor and material shortages are the leading factors in project delays. Project delays, in turn, create cash flow problems for construction companies that limit their operations and their ability to grow further.
Labor and material shortages are the result of a trend in the wider economy, while communication challenges persist at a micro level from company to company. However, ineffective communication can create a web of challenges that affect the entire business. For example, a missed change order can cause extended negotiations and payment delays, which can affect the end of the project while costing the company more.
This payment delay affects the general contractor, but it also creates long-term challenges for subcontractors, who are often paid later than the general contractor. Many companies use ConstrucTech tools to simplify communication and reduce project delays.
Construction x Productivity Growth
We regularly examine the relationship between the construction and manufacturing industries. This month, we will examine GDP trends across two major manufacturing areas: computer and electronic products, and plastics and rubber products.
Manufacturing of Computer and Electronic Products
The source: Fred’s Economic Data
October 2024 – Production of computer and electronic products has increased steadily since 2016. This trend, accelerated by the passage of the CHIPS Act in 2022, has increased US electronic production significantly, leading to the steady increase in GDP described in the graph above. Since domestic production will be an important topic in the upcoming elections and both candidates express similar views, we expect this trend to continue during the next 4-6 years.
The emergence of this trend is important in the construction industry. As the focus is on increasing domestic production, construction firms will be tasked with building their own facilities. We’ve seen this supportive architecture in the past, and there’s no reason to expect anything different going forward.
Plastic and Rubber Manufacturing
The source: Fred’s Economic Data
October 2024 – Although not as concentrated as computer and electronic production, plastic and rubber production followed the same high trend. The dip in GDP from the epidemic was quickly eliminated with good progress, and we see this trend continuing in 2024.
Plastic and rubber products are important in the construction of insulation, pipes, windows, and roofing. They are also important materials in the automotive, packaging, and medical industries. As domestic production increases, the prices of these items should decrease over time as more purchases enter the market.
Other Trends and Key Issues
- Electric Power Infrastructure Data Drives Latest Construction Cost Data – ConstructionConnect’s monthly economic report states that growth in energy infrastructure spending in the major dollar category is offsetting industry spending cuts. These spending cuts were most evident in all military, manufacturing, and infrastructure spending in August 2024.
- Federal Minimum Wage Increases Jan 1st, 2025 – The minimum wage for EO 14026, which is provided to employees who perform work or in connection with collective contracts, will increase from $17.20 to $17.75. This was established on September 30 during the US Department of Labor’s annual review of the Wage and Hour Division.
- Eligibility for the Small Business Administration (SBA) Alters HubZone Program – The SBA has revised the eligibility criteria for its Historic Unused Business Zone (HUBZone) program, impacting federal contractors. For more information about the changes, visit the SBA website.
National Business Capital’s Construction Recap (October 2024)
Each month, we will provide our unique perspective on the short to mid-term construction industry outlook. Our insights come from a combination of available industry statistics, internal data, and the common sense of the construction clients we work with every day.
- Construction Finance Volume Grows Continuously QoQ – As our team continues to focus on supporting the growth and development of the construction industry, our internal funding data revealed a 30% overall growth from the beginning of 2024. This has grown steadily quarter after quarter and is expected to continue through 2025 as we progress. to better serve the unique needs of our construction clients.
- California, Florida, New York, and Texas Continue to Drive Funding Volume – In line with our other reports, some states continue to drive the volume of National Business Capital funding in the construction industry. It is not surprising, given the number of projects related to construction and the relative GDP between these states. However, as production continues to improve, we expect to see the volume of funds increase in line with new initiatives.
