Linesight Report Cites Anticipated Growth for U.S. Construction Industry in 2025 Despite Ongoing Challenges

Growth fueled by increased demand in non-residential sectors, but ongoing skilled labor shortages and potential inflationary policies could have impact in 2025

NEW YORK, Nov. 21, 2024 /PRNewswire/ -- Global construction consultant Linesight released its report "Construction Market Insights - Americas: Industry Update," revealing key growth trends in the U.S. While the U.S. economy is expected to see a slight slowdown in 2025, the construction industry is expected to grow at a steady annual rate of 2.2% between 2025 and 2027.

In the near term, the U.S. construction industry is expected to expand by 2.5% in 2024, growth that is being driven by increased spending in non-residential sectors like data centers, manufacturing, infrastructure, and energy and utilities. However, labor remains a significant cost factor due to the shortage of skilled workers, which is expected to continue into 2025. Regions with significant high-tech and mission-critical projects still struggle with a lack of skilled labor, particularly in the MEP trades.

On the supply chain front, in 2024, demand for AI computing and data center expansion drove significant pressure, particularly in power and cooling solutions. The outlook for freight and logistics remains uncertain, with fluctuating costs, labor strikes and port disruptions posing a significant risk to the global freight industry. Despite these pressures that tested, and may continue to test the resilience of supply chains, proactive planning and supplier investments provide hope for 2025.

"While the outlook for construction growth is generally positive within certain sectors, we would caution clients to adopt diligent risk mitigation strategies to ensure stability in the current environment," said Patrick Ryan, Executive Vice President, Americas, at Linesight.

The trajectory of this growth may also be influenced by rising labor and production expenses as well as any new policies introduced by a new administration. Additionally, recent natural disasters have resulted in billions of dollars of damage, putting increased pressure on the construction industry.

Even with challenging market conditions, Linesight continues to grow, with an exciting pipeline of business ahead for the next few years across the Americas. The company's expertise in mission-critical sectors, as well as clean energy and advanced manufacturing, positions it well to support clients navigating the opportunities and challenges presented by the supply chain, labor shortage and greater economy outlined in the latest Construction Market Insights Report.
Read the full report.

About Linesight:
Linesight is a multinational consultancy firm with over 50 years' experience, providing cost, schedule, program and project management services to a multitude of sectors including Life Sciences, Commercial, Data Centers, High-Tech Industrial, Residential, Hospitality, Healthcare and Retail. Linesight's specialist project teams, each with specific skills and experience, provide faster project delivery, greater cost efficiency and maximum value for money for their clients. For further information, please visit www.linesight.com.

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SOURCE Linesight