Although supply-chain constraints in the construction sectors in the United States and Canada have eased up in 2023 and are expected to continue to ease in 2024, labor shortages will persist, and construction costs will continue to grow at an above-average rate, says a new report by JLL.
The United States
Construction cost growth in the United States in 2024 will be modest, and lower incoming construction demand (due to higher interest rates, among other factors) will shorten the lead time for many materials, particularly commodity items. However, long lead times are expected to remain in 2024 for electrical materials and other finished goods, which are in high demand due to projects that are favoring tech-heavy spaces.
Although supply-chain concerns are lessening, geopolitical tensions and trade conflicts, as well as the increase in natural disasters, could cause disruptions in 2024.
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