likened to several key components.
First, population increase and urbanization have led to a rise in residential housing demands, particularly in major metropolitan areas. The result is a heightened need for construction materials, such as cement, concrete and steel to accommodate the growing number of these projects.
Second, the nonresidential construction sector, including commercial, industrial and infrastructure projects have also been a significant driver for the market. Government initiatives aimed at improving the country’ s infrastructure have further fueled the demand for construction materials in this sector.
Combine the above with several other factors, such as global economic uncertainty, disruption in supply chains, increase in prices of equipment, materials shortages and fuel, and you have the perfect storm for a volatile construction industry.
To that end, while the need and desire for new construction of either residential or nonresidential construction remains, the rise in prices due to the aforementioned factors could be problematic for the industry over the long term.
The following( specific) elements that could also impact the market, are worth watching.
July 2024 • www. thepartsconnection. org • 21