All signs are pointing to a positive 2023 on the nonresidential construction front. On one hand, the sector is likely to be bolstered by funds from the Infrastructure Investment and Jobs Act (IIJA) and the CHIPS and Science Act of 2022. On the other hand, residential construction is anticipated to slow. Either way, it won’t be all smooth sailing ahead. Headwinds such as inflation and supply chain issues will continue to affect both residential and nonresidential segments, industry experts say.
“The residential market is going to cool down and stabilize while the multi-family housing, the commercial market and the industrial market are all looking healthy into 2023,” notes Christian Geisthoff, vice president of corporate development, Viega. “The architectural index is still showing stable conditions and everyone I talked to has bookings into next year, so those markets are likely to have the best prospects.”