Today’s evolving construction landscape

By Dani Sheehan. 

Numbers project a slowdown in growth over the next few years, but how will this affect each sector? Listen to this Contractor Outlook newscast to find out and focus your business approach. 

“The quote, ‘the only thing constant is change’ really resonates,” Paul starts. “When we look at the construction space over the next several years, it continues to evolve.” 

You won’t want to miss the twists and turns of a recent Contractor Outlook newscast to better understand factors influencing the construction industry today. Heidi J. Ellsworth sits down with Paul Trombitas of FMI, a leading research company, to breakdown the numbers in the 2024 FMI Building Products Market Overview. They look at current trends and forecast a view of the next five years. 

The construction industry has seen significant growth over the past several years, but the landscape is starting to change. Paul reveals that while the industry experienced substantial growth from 2021 to 2023, the following years will slow down. “What we anticipate moving forward is really a slowdown in growth – not necessarily a decline – but a change in growth from six percent down to three percent,” Paul explains. 

Not all sectors will be affected equally, however. Paul points out that in the residential market, single-family construction is expected to fare well, with a projected seven percent annual growth rate. He’s seeing declines in the multifamily market through 2026. Residential construction accounts for 45% of overall spending, so these trends will have a significant impact on the market. He shares, “It’s a great way to gauge the health and wellness of the overall market in your portfolio of segments. And projects and products are going to be different than the overall market. And it's a way to gauge how you're performing against the marketplace.” 

The forecast provides a tool for evaluating your market position and adjusting your business approach. Whether the market slows down or picks up, understanding the changing dynamics can help you decide whether to be more competitive in filling your backlog or more selective in choosing your projects. 

Read the transcript, Listen to the newscast or Watch the webinar to help you prepare for the future in today’s evolving construction landscape.