Construction contractors are less optimistic about many private-sector segments than they were a year ago, but their expectations for the public sector market have remained relatively bullish, according to survey results released Jan. 4 by the Associated General Contractors of America and Sage. The findings are detailed in High Hopes for Public Sector Funding Amid Workforce and Supply Chain Challenges: The 2023 Construction Hiring & Business Outlook.

Dodge Construction Network’s year-end report analyzes key trends across the industry throughout 2022 and provides industry insights into 2023.

Total construction spending increased by 0.2 percent in November, dragged down by a lack of new infrastructure projects along with a continuing slide in homebuilding, according to an analysis the Associated General Contractors of America released Jan. 3 of federal spending data. Association officials urged leaders in Washington to speed the release of funds authorized by infrastructure laws passed in 2021 and 2022 and address regulatory delays associated with those projects.

The global building thermal insulation market will grow to $35.3 billion by 2027, a CAGR of 4.7 percent from $8 billion in 2022. The use of building thermal insulation has witnessed significant growth because of the increasing requirement for improved heating and cooling comfort and better fire resistance of building thermal insulation materials, such as glass wool, stone wool and plastic foams.

Construction employment increased in 268 of 358 metro areas between November 2021 and November 2022, according to an analysis by the Associated General Contractors of America of new government employment data. Association officials said the job gains likely would have been higher, but that many contractors report that demand for new projects is outpacing the availability of workers in many parts of the country.

The price of materials and services used in nonresidential construction continued rising at a double-digit rate in November from a year earlier, propelled by outsized increases in the cost of a variety of building materials, according to an analysis by the Associated General Contractors of America of government data released Dec. 9. Association officials noted that contractors are having to pay more both for materials and for the subcontractor services they need to finish most projects.

The Marcum Commercial Construction Index for the third quarter of 2022 reports that the construction industry remains constrained by labor shortages and elevated materials prices, but now also faces a rapidly deteriorating economic outlook and severely elevated borrowing costs. While some construction segments retain momentum, there are signs that broader economic weakness have begun to drag on the industry.

Construction companies added 20,000 employees in November and continued to raise wages for hourly workers more steeply than other sectors as the industry’s unemployment rate tumbled, according to an analysis by the Associated General Contractors of America of new government data. Association officials said the data shows that firms would have added significantly more workers if they could find more people to hire.

Total construction spending decreased by 0.3 percent for the month of October, with downturns in homebuilding and most major nonresidential categories, according to an analysis the Associated General Contractors of America released Dec. 1 of federal spending data. Association officials noted contractors are struggling to complete projects as the number of open positions at the end of October topped hires in the month.