Construction Industry Careers Outlook in 2024 and Beyond

As we step into 2024, the global construction industry stands at the precipice of significant transformation. From residential and commercial construction forecasts to the shifting landscape of work types, the industry is poised to experience a multitude of changes. However, these shifts are not without their challenges. Labor shortages, rising costs, and economic uncertainties are just a few of the hurdles that the industry must overcome.

In this article, we delve into the various facets of the construction industry in 2024, exploring the opportunities and challenges that lie ahead. We will examine the growth prospects in commercial and residential construction, the impact of technology on industry careers, and the pressing workforce challenges that industry leaders must address. Whether you’re a seasoned professional in the field, a newcomer looking to understand the industry landscape, or simply interested in the future of construction, this comprehensive overview provides valuable insights into what 2024 holds for the construction industry. So, let’s embark on this journey of discovery and delve into the future of construction.

The Global Construction Industry Outlook

The Global Construction Industry Outlook for 2024 presents a mixed picture. The Global Construction Market is projected to grow from USD 10.54 trillion in 2023 to USD 16.14 trillion by 2028, at a CAGR of 8.90%. This growth is expected despite the industry’s forecasted sluggish expansion of just 0.8% in 2023.

The US engineering and construction industry started 2022 positively, following an 8% growth in construction spending in 2021. However, the sector continues to face challenges, including a shortage of skilled labor and high levels of uncertainty due to a potential economic recession.

Despite these challenges, there is optimism in the industry. Over half (52%) of respondents felt positive about the construction industry in their local market for 2023. Furthermore, infrastructure is expected to drive growth in construction activity in 2023.

The global construction industry is expected to reach an estimated $10.5 trillion by 2023, growing at a CAGR of 4.2%. This growth is expected to continue, with the industry forecasted to reach $12.9 trillion by 2028, at a CAGR of 4.4% from 2023 to 2028.

In the United States, the construction industry is expected to grow by 6.1% to reach $1.419 trillion in 2023. This growth is partly driven by an expected 18% increase in public works construction in 2023, to $225 billion, according to Dodge.

However, the industry also faces potential headwinds, including the risk of recession, continued inflation, labor shortages, and supply chain issues, which are expected to impact construction in 2023. Despite these challenges, global construction output is expected to grow by 1.8% in 2023, following an estimated growth of 1.7% in 2022.

Related Posts:

• How the US Construction Industry is Tackling the Skilled Labor Shortage
• The Future of Construction Technology Jobs: Opportunities, Salaries, and Job Outlook for 2024 and Beyond
• BIM Manager Job Description and Salary
• Civil Engineering Vs Mechanical Engineering: Major Differences
• Water Resource Engineer Job Description and Salary Details

Commercial Construction Outlook 2023

The Global Construction Market is projected to grow from USD 10.54 trillion in 2023 to USD 16.14 trillion by 2028, at a CAGR of 8.90%. This growth is expected despite the industry’s forecasted sluggish expansion of just 0.8% in 2023. The 2023 outlook explores five engineering and construction industry trends that can help companies differentiate themselves and capture growth in the year.

JLL’s 2023 Construction Outlook foresees growth tempered by cost increases. The industry is looking for solutions to labor shortages. However, nonresidential construction is expected to suffer in late 2023 and into 2024, with recovery sometime in 2025.

Total construction starts are expected to remain flat in 2023, but a significant swing in the type of work appears imminent. According to Dodge, public works construction will increase by 18% in 2023 to $225 billion, driven by the Infrastructure Investment and Jobs Act (IIJA).

Additional data suggest that the global Construction market size was valued at USD 12.36 trillion in 2022 and is expected to expand at a CAGR of 9.26% during the forecast period. Furthermore, the commercial construction market is expected to see strong growth in 2023, despite slowing U.S. and global markets.

The global construction industry is expected to reach an estimated $10.5 trillion by 2023, growing at a CAGR of 4.2%. This growth is expected to continue, with the industry forecasted to reach $12.9 trillion by 2028, at a CAGR of 4.4% from 2023 to 2028.

These forecasts and trends indicate a period of significant change and opportunity in the global commercial construction industry, despite the challenges posed by labor shortages and economic uncertainty.

Residential Construction Forecast 2023

The Residential Construction Forecast for 2023 presents a varied outlook. According to the 2023 Dodge Construction Outlook, housing starts are expected to fall 6% to 891,000 units in 2023 with a value of $274 billion due to rising interest rates and low inventory pushing housing affordability to its worst levels in nearly 15 years.

Housing starts are likely to see a double-digit decrease in 2023, according to the latest forecast from the National Association of Home Builders. However, residential construction is declining for now, but the future will look different.

Despite an improving interest-rate environment and ongoing job gains, the National Association of Realtors expects annual existing-home sales to decline, as reported by Kitchen & Bath Design News.

The forecast for 2023 is most affected by the downward pressure placed by higher interest rates in 2022, which slashed buyer purchasing power. Although the residential construction sector is expected to shrink in 2023 and 2024, GlobalData expects the sector to begin recovering from 2025.

We now project 2023 housing starts to decline 22% year over year to 1.220 million units, according to Morningstar.

Additional data from Buildertrend suggests that hundreds of builders were surveyed, and we analyzed internal data for the 2023 Residential Construction Outlook. Furthermore, Forbes suggests that 2023 and 2024 will not be disastrous for housing in the United States, but prices will likely edge down with lackluster volume of sales.

These forecasts and trends indicate a period of significant change in the global residential construction industry, despite the challenges posed by rising interest rates and low inventory.

Construction Industry Challenges 2023

The Construction Industry in 2023 is expected to face numerous challenges. According to Jencap, these challenges include a skilled labor shortage, worker safety concerns, inflation and rising costs, and infrastructure. CBIZ also highlights the future of interest rate hikes, the recession’s impact on the market, planning for a slow-growth economy, and concerns for an aging construction workforce as key challenges.

A LinkedIn article by Samuel Okoronkwo emphasizes the severe labor and skills shortage facing the construction industry. Liberty Mutual Business Insurance lists climate volatility, AI and BIM, supply chain disruption, and opioid misuse as risks facing the construction sector heading into 2023.

Capstone Trade mentions market uncertainty, inflation, high-interest rates, rising costs, supply-chain problems, and material and skilled labor shortages as challenges facing the E&C industry.

Additional data from PlanRadar suggests that inflationary pressure and rising material costs are one of the biggest challenges for the construction sector in 2023. Wipfli LLP suggests focusing on recruitment and retention and addressing succession planning to thrive through the challenges ahead.

Raymond Search Group emphasizes that retaining employees is another challenge that construction companies are facing in 2023. New Lyfe Accounting lists labor shortages, supply chain issues, and rising inflation as challenges facing the construction industry in 2023.

KPMG Australia mentions that around the globe, the pressures facing contractors continue to cause pain, from wage and material cost escalation to supply chain disruption.

These challenges indicate a period of significant change in the global construction industry, despite the opportunities for growth and development.

Engineering and Construction Industry Outlook

The Engineering and Construction Industry Outlook for 2023 presents a mixed picture. According to Deloitte, the US engineering and construction industry began 2022 on a bright note after achieving strong growth of 8% in construction spending in 2021. However, the industry continues to face challenges, including a shortage of skilled labor and high levels of uncertainty due to a potential economic recession.

JLL’s 2023 Construction Outlook foresees growth tempered by cost increases. The industry is looking for solutions to labor shortages. However, Engineering News Record stated that new construction projects will be flat in 2023, so growth is going to be a challenge.

Additional data from FMI Corporation provides a comprehensive economic assessment for the engineering and construction industry for the first quarter of 2023. Furthermore, PwC suggests that a recovery in the sector’s M&A activity in the second half of 2023 will likely require improved economic conditions.

These forecasts and trends indicate a period of significant change in the global engineering and construction industry, despite the opportunities for growth and development.

The Shift in Construction Work Type

The shift in construction work type for 2023 is expected to be significant. According to ABC, the construction industry will need to attract an estimated 546,000 additional workers on top of the normal pace of hiring in 2023 to meet the demand.

Viewpoint predicts a 6% growth in the nonresidential category in 2023, indicating a shift from residential to nonresidential construction. Insurance Journal also suggests that total construction starts are expected to remain flat in 2023, but a significant swing in the type of work appears imminent.

A report by McKinsey suggests that nine shifts will radically change the way construction is done, indicating a significant transformation in the industry.

Additional data from Pro Crew Schedule suggests that creating a second or third shift can affect construction projects, indicating a potential shift in work schedules in the industry.

These shifts in work type and schedules indicate a period of significant change in the global construction industry, with potential impacts on labor demand, project types, and work schedules.

Career Opportunities in the Construction Industry

The Construction Industry in 2023 is expected to offer a wide range of career opportunities. According to ABC, the construction industry will need to attract an estimated 546,000 additional workers on top of the normal pace of hiring in 2023 to meet the demand.

ZipRecruiter highlights that construction jobs encompass a wide range of opportunities in the industry, ranging from carpenters and electricians to project managers and civil engineers. However, Construction Dive reports that salaried positions, such as architects, engineers, and estimating personnel, are easier to fill, but 81% of firms still struggled to find project managers.

Connected World suggests that 2023 offers interesting opportunities for hiring in the construction industry, and the vast majority expect to do just that. Furthermore, AGC mentions that between January 2022 and 2023, 45 states added construction jobs, while industry employment declined in four states and the District of Columbia.

Additional data from NAHB suggests that careers in the construction trades include building systems technician, carpentry, drywall and ceiling tile installers, electrical, HVACR, masonry, painting, and plumbing.

Construction Exec suggests that as more state, regional, and local transportation agencies move ahead with construction, employment in this segment is likely to expand in 2023.

Construction Placements highlights that some of the most in-demand construction careers for 2023 and beyond include project management, construction technology, sustainable design and construction, and advanced building techniques.

These career opportunities indicate a period of significant growth and demand in the global construction industry, despite the challenges posed by labor shortages.

The Impact of Technology on the Construction Industry Careers

The impact of technology on the construction industry careers in 2023 is expected to be significant. According to Onrec, the rise of technology is causing a major transformation in the construction industry, presenting both opportunities and challenges.

For Construction Pros suggests that technology can help attract and retain talent in the industry. ConstructionPlacements lists the top 10 construction technology jobs to consider in 2023 and beyond for a rewarding career in the AEC industry.

Startup.info mentions that technology has facilitated the swift and precise performance of hitherto impossible tasks in the construction industry. Construction Technology suggests that organizations will continue to look to new construction technologies to make job sites safer and projects more sustainable.

Additional data from ABC Supply suggests that emerging construction technology is shaping the industry in 2023. Liberty Mutual Business Insurance suggests that technology is making positive impacts on key priorities within the construction industry, including workforce.

Kwant.ai suggests that technology can support many verticals of construction, so expect to see more digital HR, productivity, and safety solutions in 2023.

These impacts of technology indicate a period of significant change in the global construction industry, with potential impacts on labor demand, project types, and work schedules.

The Construction Workforce Challenges

The Construction Workforce Challenges for 2023 are expected to be significant. According to ABC, the construction industry will need to attract an estimated 546,000 additional workers on top of the normal pace of hiring in 2023 to meet the demand.

CDP Inc. suggests that in 2023, construction companies will be challenged with an increased expectation of wages from employees. CBIZ also highlights labor shortages, material challenges, economic issues, and technology as key challenges.

Smart Construction mentions that U.S. construction companies will face many challenges in 2023, from economic uncertainty to high material costs to labor shortages. Buildertrend also highlights that the construction industry has faced a severe skilled labor shortage in recent years.

Additional data from Arcoro suggests that the top workforce challenges for 2023 include workers expecting higher wages, lack of qualified workers, and competition with other industries. NPR suggests that finding enough workers is going to become an even greater challenge for the construction industry.

LinkedIn emphasizes the severe labor and skills shortage facing the construction industry. AGC suggests that even as market demand evolves, contractors will continue to be confronted by many of the challenges they faced in 2022, including the impacts of supply chain disruptions.

These workforce challenges indicate a period of significant change in the global construction industry, despite the opportunities for growth and development.