The economic forecasts for the 2022 construction market came out before Russia invaded Ukraine, upending world oil markets and further affecting material prices.
In this episode of The Dirt, we check in again with Ken Simonson, chief economist for the Associated General Contractors, to see how the invasion is affecting the U.S. construction market and what contractors should know as we enter the second quarter of the year.
When host of The Dirt Bryan Furnace first interviewed Simonson in December, the $1 trillion infrastructure law had been signed the month before, but the construction industry was also still struggling with a labor shortage and higher material costs.
With the added strain of the Russian invasion on world markets, especially for oil, what can contractors expect going forward?
Could the invasion lead to a U.S. recession? What will it mean for gas and diesel prices short-term and long-term? What about prices on construction materials? And could those price increases slow the economy? Also, what effect will the Fed’s rate increases have?
Though there is still much uncertainty, Simonson sees some definite, immediate impacts on contractors, and some that will continue to make life more challenging.
So if you’re wondering what’s next for the construction market for the rest of 2022, you won’t want to miss this latest episode of The Dirt.
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