AGC Reports on Factors Impacting Long-Term Construction Outlook

Washington, DC, January 5, 2021-Ken Simonsen, chief economist for Associated General Contractors of America, lists the following factors as expected to impact the long-run outlook for construction (post-pandemic):

• Slower population growth means slower demand growth for most construction

• Permanent shift from retail to e-commerce/distribution structures

• More specialized and online healthcare facilities; fewer hospitals, nursing homes

• Continuing demand for K-12 but much less for higher-ed construction

• Demand for restaurants should revive sooner than hotels, travel-related construction

• Not clear if offices will decentralize or remain in less demand

• No sign of change yet in urban/rural or state-to-state trends.

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