Our monthly construction industry trends report combines the latest industry data with internal survey results from National Business Capital’s award-winning team. We have accumulated extensive experience in the construction industry since 2007 and we are pleased to share these findings and expand upon them through our unique expertise.
Our goal is to provide business leaders and decision-makers with the necessary information and data to make informed decisions in their business activities.
2024 ElectionxConstruction Industry
As Election Day approaches, ConstructionDive.com explores where each candidate stands on important construction-related issues. We’ve highlighted some of their key points:
| topic | trump card | Harris |
| supply chain | Former President Trump largely advocated focusing on domestic manufacturing to eliminate U.S. dependence on foreign supply chains. He aims to raise tariffs, as he did during his first term, to make American-made products more attractive. | Similar to her presidential counterparts, Vice President Harris has set her sights on domestic manufacturing. She plans to continue the administration’s initiatives to improve ports, rail and more, building on President Biden’s CHIPS Act and the Infrastructure Investment and Jobs Act (IIJA). |
| vitality | Trump has focused on domestic fossil fuel production and aims to loosen federal drilling regulations to promote faster progress. He also plans to repeal Biden-era policies like the Inflation Reduction Act, including environmental regulations like solar energy and earned product tax credits. | Harris plans to follow in President Biden’s footsteps by expanding the scope of the Lower Inflation Act and continuing to push for clean energy measures. |
| Labor and the workplace | Despite losing union support during his first term, Trump is committed to getting back on the side of workers. He sponsored the Employee and Manager Teamwork Act of 2024, which gives employees the right to bargain without retaliation. And, consistent with his other policies, he also aims to deregulate workplaces, just as he did when scaling back OSHA regulations to promote tape-free operations. | The Biden-Harris administration’s Infrastructure Investment and Jobs Act and CHIPS Act have created an influx of demand for construction work. Harris is particularly pro-union, pledging to support construction unions through the Protecting the Right to Organize Act and working with the Occupational Safety and Health Administration, which recently launched key initiatives. |
See Construction Dive’s article for more specific candidate positions on construction-related issues.
October 2024 – Former President Trump has set his sights on deregulation and domestic manufacturing, while Vice President Harris aims to continue administration initiatives that supported the construction industry under Biden. While Trump’s pro-business stance has appealed to the business community, including major construction companies, the Biden-Harris administration’s success with the CHIPS Act has not been forgotten by the industry.
There are many potential changes to the construction industry vote, but we won’t see the effects of new policies in the short term. Construction companies should continue to move forward as before to ensure they do not fall behind in the competition.
The impact of project delays on construction cash flow
Strong cash flow fuels the growing construction company. Recently, the industry as a whole has continued to face cash flow challenges for a variety of reasons, primarily due to project delays.
| GCPay Survey: What are the most common reasons for project delays? |
| 1. Labor shortage 2. Shortage of supplies 3. Communication challenges |
October 2024 – A GCPay survey found that labor and material shortages were the main reasons for project delays. Project delays, in turn, can create cash flow problems for construction companies, limiting their operations and ability to grow further.
Labor and material shortages are caused by broader economic trends, while communication challenges remain at the micro level between companies. Nonetheless, ineffective communication can create a host of challenges that impact the entire business. For example, missing a change order can lead to extended negotiations and payment delays, which can hinder project completion while costing the company significant losses.
These payment delays impact the general contractor, but also create long-term challenges for subcontractors, who often receive payment after the general contractor. Many companies are leveraging ConstrucTech tools to streamline communications and reduce project delays.
Construction x manufacturing growth
We often examine the relationship between construction and manufacturing. This month, we’ll explore GDP trends in two major manufacturing sectors: computers and electronics, and plastic and rubber products.
Computer and electronic product manufacturing
source:Fred economic data
October 2024 – Computer and electronic product manufacturing has grown steadily since 2016. With domestic manufacturing becoming a key topic in the upcoming election, and both candidates expressing similar views, we expect this trend to continue over the next 4-6 years.
This trend of outflows is significant for the construction industry. With greater focus on expanding domestic manufacturing, construction companies will be tasked with building the facilities for their operations. We’ve seen this support building activity recently and there’s no reason to expect it to be any different as we move forward.
Plastic and rubber manufacturing
source:Fred economic data
October 2024 – Although not as stable as the computer and electronics manufacturing industries, the plastics and rubber manufacturing industries are showing a similar upward trend. The decline in GDP during the pandemic was quickly offset by positive developments, and we expect this trend to continue into 2024.
Plastic and rubber products are an integral part of insulation, pipes, windows and roof construction. They are also key materials in the automotive, packaging and medical industries. As domestic manufacturing increases, prices for these materials should fall over time as more supply comes to market.
Other related trends and news
- Electric infrastructure category drives recent construction spending data – ConstructionConnect’s monthly economic report noted that growth in big-ticket spending on power infrastructure offset contractions in spending in other industries. Spending contracted most significantly in August 2024 for military, manufacturing and warehouse construction spending.
- Federal minimum wage to increase on January 1, 2025 – EO 14026 The minimum wage offered to workers performing work on or related to a covered contract will increase from $17.20 to $17.75. The standards were set Sept. 30 in the U.S. Department of Labor’s Wage and Hour Division’s annual update.
- Small Business Administration (SBA) Changes to HubZone Program Eligibility – The SBA updated the eligibility terms for its Historically Underutilized Business Zones (HUBZone) program, impacting federal contractors. For more information about the changes, please visit the SBA website.
National Business Capital Building Review (October 2024)
Each month we provide a unique perspective on the short to medium term outlook for the construction industry. Our insights come from a combination of existing industry statistics, internal data, and the overall sentiment of the construction clients we work with on a daily basis.
- The amount of construction funds continues to grow compared with the previous quarter – As our team continues to focus on supporting the growth and development of the construction industry, we have achieved 30% overall growth in our internal funding figures since the start of 2024. This trend will continue into 2025 to better meet the unique needs of construction customers.
- California, Florida, New York and Texas continue to drive funding growth – Consistent with our other reports, specific states continue to drive state business capital financing volumes in the construction industry. This is not surprising considering the number of construction-related initiatives and the proportion of GDP in these states. However, as the manufacturing industry continues to develop, we expect the amount of funding to grow in tandem with the new measures.