As a whole, 2020 played a large role in construction for the years to come due to many canceled projects or deferred plans. Here is our 2021 Construction Forecast, based on 2020 data and predictions:

2020 construction spending is approximately 50% residential, 30% nonresidential buildings, and 20% nonbuilding infrastructure.

The greatest impact on spending we have seen in 2020 is fewer starts than in years past. We will see a huge difference in spending when these new starts in 2020 reach peak spending in 2021 and 2022, near the midpoint on a construction schedule. Residential starts have been up 2% while nonresidential starts are down 15-25%. 

We expect nonresidential construction to take several years before it can recover to the levels before the pandemic. We will see the effects of this decrease in construction spending when we reach the 2021 season. 

We will especially see the effects of canceled projects from April to September of 2020 as they reach their expected midpoints of April 2021- September 2021 or even later than that. This will most likely lead to a decline in spending and available jobs in 2021 and 2022. 

As we enter 2021, construction jobs are predicted to fall. While residential spending is projected to increase by 10% we expect to see nonresidential continue to drop. If jobs increase faster than spending, we will see an increase in inflation, which should be considered in our projections.

Jerdon Enterprises, L.P. has over three decades of engineering and construction experience. Check out our past projects and our listed services to see how we can best meet your needs. For any questions, contact us today!