Report Highlights
Recent Elements Affecting the Dynamics and Outlook of the Specialty Contracting Sector
- The Specialty Contracting industry experienced a turbulent Q1 due to labor shortages and an uncertain economic climate. However, trends such as infrastructure investment, supply chain stability, and focus on sustainability are expected to drive growth through 2025 and beyond.
- 77% of contractors reported an increased difficulty filling craft positions in 2024 compared to 2023. Robust demand in specific sectors are counterbalanced by these workforce shortages as well as higher material cost.
- Uncertainty regarding supply chain stability and upcoming changes to federal import policies have complicated contractors’ abilities to accurately forecast new projects.
- Approximately one-third of construction-related materials are imported, with nearly half of these imports coming from Canada, Mexico, or China.
- Government funding through the Infrastructure Investment and Jobs Act (IIJA) continues to drive growth through infrastructure projects. Highways, bridges, and public transit construction provides a significant, federally-funded opportunity for contractors.
- Emerging construction activity derived from these federal grants will continue to act as a driver in the coming years as the government increasingly funds infrastructure, energy, and housing projects.
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Reach out to Dinan Capital Advisors Managing Director Tom Gerlacher for more report insights.