New Foundation Report Reveals Innovations, Challenges, and Opportunities in the Construction Industry
Washington, DC, December 12, 2024 – An increasingly complex environment of continuous change and multiple challenges contributes to the mixed outlook for the U.S. construction industry. In 2024, factories, bridges, and roads are expected to be the winning sectors, while warehouse and office construction will be challenged, according to a new study, “ Vertical Market Outlook Series: Construction,” released by the Equipment Leasing & Finance Foundation (Foundation).
The study provides an overview of the U.S. construction industry addressing such topics as macroeconomic factors, technological innovations, and other developments that will impact the industry going forward. It is the 11th release of the Foundation’s forward-looking Vertical Market Outlook Series designed to help readers recognize and understand opportunities and challenges that may affect their businesses.
“The construction industry is consistently among the top end-users of equipment finance, and construction equipment a top-financed asset category, so this study should be of interest to a wide swath of our industry,” said Will Tefft Foundation Research Committee Member and Equipment Manager – EverBank Corporate Asset Finance “Equipment finance professionals will find the broad range of topics examined insightful for use in their strategic planning, and as a guide to the trends and issues to monitor to benefit their customers.”
The report was commissioned by the Foundation and prepared by global advertising, technology, and data company Big Village, which also produced the previous studies in the Vertical Market Outlook Series. The new study presents data and research from a variety of sources, and examines a range of issues, including:
- Government infrastructure investments through legislation such as the Infrastructure Investment and Jobs Act (IIJA)
- Economic factors such as high interest rates and inflationary pressures that can increase equipment, material, and labor prices
- Labor shortages/rising labor costs
- Pressure from both regulations and customers to implement decarbonization and environmentally-friendly practices
- Tighter lending standards, lower risk tolerance by lenders, and increased financing costs
- Options for acquiring equipment
- High levels of construction bankruptcies and loan delinquencies
- M&A activity with a trend toward private equity firms purchasing construction and construction-related companies
- Investment in technologies including, AI & big data innovations, automation/digitization/internet of things (IoT)/augmented reality, building information modeling, cloud-based technology, additive manufacturing/3D printing, drones/aerial imaging, and new battery technology.
Download the full report at https://www.leasefoundation.org/industry-resources/vertical-outlook/.
All Foundation studies are available for free download from the Foundation’s online library at http://store.leasefoundation.org/.
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The Equipment Leasing & Finance Foundation is a 501c3 non-profit organization that propels the equipment finance sector—and its people—forward through industry-specific knowledge, intelligence, and student talent development programs that contribute to industry innovation, individual careers, and the advancement of the equipment leasing and finance industry. The Foundation is funded through charitable individual and corporate donations. Learn more at www.leasefoundation.org.
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Media contact: Kelli Nienaber, knienaber@leasefoundation.org
