The NC State Construction Conference brought together more than 1,000 participants this year including representatives from state agencies, universities, community colleges, municipalities, architectural/engineering firms, general contractors and HUB firms to learn about issues related to the planning, design, and construction of state capital projects. This conference is considered the preeminent education and networking event for construction professionals to discuss the state’s capital improvement program and mutual concerns about the costly and complex process of constructing public projects.
One of the highlights of the conference each year is the “Economic Forecast” presentation by Ken Simonson, Chief Economist for AGC of America. While Simonson’s 17th consecutive presentation may not have been as optimistic as the prior year’s - mostly due to continued labor shortages and threatened tariffs on construction materials - one piece of good news is that the industry can expect fewer regulatory barriers that can sometimes delay projects and drive-up costs.
“Although construction employment has increased in the Carolinas over the last 12 months, most contractors believe it will be harder to hire the workers they need in 2025. said Ken Simonson, Chief Economist for AGC of America. “The top three concerns for contractors are all related to labor – rising pay, insufficient number of workers and subcontractors and, quality of the workforce.”
Some highlights of Simonson’s presentation included:
- Economic Growth will continue but policy uncertainty has risen
- Higher tariffs will raise costs, invite retaliation and disrupt supply
- Harsh immigration/deportation actions will worsen construction labor shortage
- Expectation of larger deficits may push interest rates higher
- Less support for renewables may slow solar and EV projects
- However, lessened federal regulations may help projects start sooner and move quicker
- Single Family: gradual pickup but vulnerable to higher mortgage rates
- Multifamily, warehouse, office – declines likely through 2025
- Data center, power, infrastructure – strong growth, Manufacturing construction – slower growth
- Materials costs: up 1-3% but could rise significantly if tariffs are enacted
- Labor costs: up 4-5%. Availability remains the #1 challenge for many contractors
Other highlights of the conference included a “surprise” guest speaker – Governor Josh Stein - who recognized Women in Construction week and highlighted the need to invest more in our construction trade programs in high schools and community colleges.
The HUB award winners included our very own CAGC Construction Business Academy graduate and CAGC member Dannesia Pullen with Pullen Boy Hauling who was recognized with a Firm Award for Excellence.
Download and view Ken Simonson’s complete presentation.