Compared with the other sectors in its economy, construction in North America was less impacted during the pandemic than most. The impact was felt unevenly across markets. New York, for instance, was hard hit and faced tough lockdowns. The market inevitably cooled but is now heating up again.

Despite much of construction in the region seeming to power through the pandemic, COVID-19 has remained a drag on most markets. As workloads have accelerated, most regions are experiencing labour shortages.

Meanwhile, disruption to supply chains from the pandemic, obstruction of the Suez Canal, and natural disasters – like the wildfires in the Western US and the deep freeze in Texas – have increased concerns over cost escalation, widespread project delays, and prolonged lead times for materials across key markets. This is likely to lead the industry to transition from a “just in time” to a “just in case” delivery approach, which may increase cost but reduce risk.

Future outlook

Both Canada and the US have high rates of vaccinations, which should allow for a quicker return to normality within their economies.

Progress of the environmental agenda

The US are more than double the average in Europe or China, with the US accounting for 14.5 percent of global carbon emissions. This opens huge opportunities for construction businesses active in green solutions.

Regional construction cost performance

Top three construction challenges