Construction & Building Materials

October 1, 2018

Fourth Quarter 2018 | Segment Focus: Nonresidential Construction

Executive Industry Trends

  • The labor market continues to tighten, and construction labor costs continue to rise especially in expensive coastal cities.

  • GDP growth and corporate profitability bolstered nonresidential construction growth throughout 2018; residential construction was choppier over the year. Housing market activity continued to soften in Q4 as housing starts fell.

  • Key themes in construction industry mergers and acquisitions have been consolidation as retiring baby boomers look for exit opportunities and the rise of construction technology and software companies.

  • After two years of Fed rate hikes, the Fed has adopted a wait-and-see approach to raising rates as treasury yield spreads continue to flatten.


IN THIS ISSUE

Construction Overview

  • GDP

  • Unemployment

  • Value Put-In-Place

Sector Focus

  • Non-Residential Construction

  • 10-Year Yields

  • Real Broad Index

  • Corporate Profits 

Sector Roundup

  • Residential Construction 

  • Building Materials 

  • Roads, Highways, and Bridges

Bellwether Stocks and Industry Participants

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