Looking ahead to 2024, there could be a boost to construction associated with manufacturing, transportation infrastructure and clean energy infrastructure as funds from three key pieces of legislation passed in 2021 and 2022 — the Infrastructure Investment and Jobs Act (IIJA), the Inflation Reduction Act (IRA), and the Creating Helpful Incentives to Produce Semiconductors (CHIPS) Act — are expected to flow into the industry, according to Deloitte’s 2024 Engineering and Construction Industry Outlook. As such, construction confidence remains high, with the Associated Builders and Contractors (ABC) identifying expectations for an increase in profit margins and staffing levels, particularly in the first half of 2024.
As engineering and construction firms plan for the upcoming year, Deloitte identifies five key areas that may help them capitalize on the projected industry growth and tackle unforeseen challenges, including heightened focus on sustainability and efficiency, advancement of digitalization and generative AI, differentiated impact of market uncertainty across the residential and nonresidential segments, change in operating strategies to manage cost volatilities, demand and customer priorities, and new workforce norms to bridge the lingering talent and skills gaps.