By Gigi Wood – For Construction PROS.com – August 22, 2024
Dodge Construction Network has released its 2024 Mid-Year Outlook, which estimates the success of various construction sectors (residential, nonresidential and public works) for the remaining part of the year. Overall, the outlook is positive for the second half of 2024, going into the election season with expectations of Federal Reserve rate cuts.
“The new assumption is that rate cuts (25 bps each) will come in September and December, bringing the target range to 4.75 percent to 5 percent by year end,” the report stated. “Cuts” will continue at 25 bps per quarter until the target rate reaches 3 percent by late 2026.”
Overall, Dodge expects construction starts to increase at a 10 percent rate, reaching $2.4 billion in 2024.
Consistency will be key to the construction industry’s economy, the report stated. While hiring is cooling overall, the market should be stable.
“The economy should be more consistent in 2024 than over the last two years,” the report said. “This consistency will bring increased opportunities to the nation’s construction verticals.”Nonbuilding Construction
Infrastructure is expected to see the biggest wins this year, with the Infrastructure Investment and Jobs Act (IIJA) funding bridges and roads. In 2024, construction in this segment is expected to grow by 15 percent this year to $347 billion. Public works will grow 22 percent over the year to $272 billion, while power/utilities will pull back 6 percent to $74 billion, according to the report.