The COVID-19 pandemic has upended much in the US, but one pleasant surprise has been the resilience of the building construction market. US consumers have put their idle time, vacation funds, and increased ability to work from home – which better enables them to schedule and oversee workers in their homes, as well as to accomplish DIY projects in down time during the work – to use, engaging in a wide range of home improvement projects from adding pools and decks to converting unused spaces into home gyms and offices.
A recent article highlights another benefit of the robust construction market: the ongoing need for workers skilled in carpentry, plumbing, installing flooring, erecting drywall, among others. Many consumers remain interested in buying homes, spurring the construction of new residences. Furthermore, home remodeling activity is expected to also post gains going forward, as homeowners – especially those unable to get projects scheduled in 2020 – will look to have these renovations completed in 2021.
Indeed, this shortage of workers – like the shortage of lumber and other building supplies – is one of the factors that may place a brake on construction activity in 2021, even as the COVID-19 pandemic recedes. A lack of qualified workers will make it more difficult for projects to get done and will also add to their cost, which may cause some homeowners to cancel projects and spend on other things. Industry efforts to attract workers, as well as such incentives as the prospect of steady and increasingly lucrative work, will be key to maintaining momentum in the construction market going forward.
For more information and discussion of opportunities, see The Freedonia Group’s extensive collection of off-the-shelf research, particularly in the Construction and Building Products. Freedonia also offers an expanding catalog of COVID-19 Economic Impact reports, which highlight how various industries are responding to the current crisis with a comparison to recent recessions. Freedonia Custom Research is also available for questions requiring tailored market intelligence.