Labor continues to be the cost driver, and while the lack of labor availability is holding up some projects, sales are still increasing. Talk of recession is ebbing, although new starts are down, and the nonresidential backlog has been decreasing for the past four months. Materials costs have levelled out, but there are still some components with unacceptably long lead times. Our focus continues to be on the primary drivers of selling price to owners.

Download our Q4 Construction Economy Report and get all the details from MOCA Chief Economist Tom Sanders.