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21 March 2024

Construction Market Insights - Americas

Focusing on the United States and Canada, this report offers a high-level review of the industry's performance in 2023 and provides projections for 2024.

Focusing on the United States and Canada, this report offers a high-level review of the industry's performance in 2023 and provides projections for 2024.

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Linesight’s Construction Market Insights report covers key industry topics and trends. Focusing on the United States and Canada, this report offers a high-level review of the industry's performance in 2023 and provides projections for 2024.

This edition explores the growth opportunities that are coming under pressure due to skilled worker shortages in key growth sectors.

Dive into the dynamics of the construction industry in the Americas, with analysis from our Subject Matter Experts on economic trends, commodities market fluctuations, and sector-specific challenges, as outlined in our key findings.

Key economic and industry findings include:

  • Macroeconomic overview: The US and Canada demonstrated resilience in 2023, with the US maintaining a strong job market and Canada enjoying growth from job creation and population increase. Both countries look towards 2024 with cautious optimism, hoping for economic growth facilitated by potential interest rate adjustments in response to easing inflation.
  • Inflation and interest rates: After peaking in 2022, inflation is moderating, with stable yet elevated interest rates. The construction industry anticipates possible rate reductions later in 2024, aligning with easing inflationary pressures.
  • Construction sector overview: Despite challenges from high interest rates and labor shortages, certain sectors like data centers, infrastructure and high-tech industrial remain robust, driven by significant investments. Supply chain and labor issues continue to be pivotal, with the industry focusing on strategic solutions to mitigate these challenges.
  • Commodities market adjustment: 2023 saw a general easing in commodities prices, offering relief to the construction industry. This adjustment is particularly beneficial for materials with high energy requirements, providing a positive outlook for future projects.

Sector-specific insights:

  • Data Centers: The demand for data centers is skyrocketing in North America, propelled by the growing need for AI capabilities. This surge necessitates innovative solutions in design and cooling technologies to accommodate the increased power consumption and heat loads.
  • Life Sciences: The life sciences sector in the US has seen a shift in venture capital funding, with a notable decrease in 2023. However, AI's role in accelerating drug discovery continues to grow, influencing the demand for specialized facilities.
  • High Tech Industrial: Supportive government policies such as the CHIPS Act and the Inflation Reduction Act are fostering growth in sectors like semiconductor and battery manufacturing, indicating a strong year-over-year increase and signaling new opportunities for construction and conversion projects.
  • Commercial: The commercial real estate market is adjusting to the post-pandemic work models, with a focus on converting spaces to meet new demands and emphasizing sustainable, health-oriented building.

Download the full report to access these insights and analysis of the construction market for the United States and Canada.

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