Building Materials Industry Report August 2021
Industry Performance in 2021
Construction markets have been able to quickly recover from the temporary interruption in operations that came as a result of the coronavirus pandemic. The industry is expected to strengthen over the five years to 2026. Revenue is forecasted to increase an annualized 2.2% to $130.3 billion over the five years to 2026. Industry revenue has increased an estimated 9.7% in 2020 alone.
Key Trends
The pandemic has had a net negative overall impact on construction pricing with pockets of cost inflation raising concerns. The increase in lumber and rebar pricing were key contributors to the 12.1% February year-over-year rise in the Federal Reserve’s Producer Price Index for Construction Materials. From May to July alone the index has risen 3.98%.
Environmental concerns are beginning driving consumer demands for sustainable materials used throughout infrastructure.
The Consumer Confidence Index is expected to decrease by the end of 2021. This index measures consumers’ perception of the economy. When perceptions are positive, households are more likely to spend on big-ticket projects.
