construction suppliers

As 2019 winds down, construction suppliers have seen several factors that have affected their business this year. With this in mind, let’s take a look at some of the significant trends in the construction industry for 2019.

Workforce Shortage

The labor shortages of 2017 and 2018 continue in 2019. The Associated General Contractors of America (AGC) and Autodesk, report that 80% of construction suppliers are having difficulty filling both hourly and craft positions. There is no end in sight, according to the U.S. Bureau of Labor. Its statistics show that nearly 300,000 jobs won’t be filled in the first half of 2019. Consequently, owners and management of construction firms are making efforts to rectify the problem. Approximately two-thirds of contract suppliers report raising the pay of craftsmen, while 30 percent are also adding other incentives to help keep and attract qualified workers.


The tariffs went into full effect on January 1, 2019. As a result, the construction industry is experiencing approximately a 20% cost increase in building materials. Because of this rise in prices, construction suppliers are finding it hard to guarantee material costs and maintain a proper profit margin.

Slower Growth

Growth in the construction industry is a bit of a rollercoaster. At the beginning of 2019, forecasts predicted that total construction spending would be up 3% as compared to a 4% increase in 2018. Reports indicate that down markets are lodging and religious, while office, education, public safety, water supply, and manufacturing are growing. To maintain sales or grow, construction suppliers may need to enter markets that they have not in the past.

Offsite Construction

More construction suppliers are exploring offsite construction in 2019. Offsite construction presents the opportunity to lower costs, increase productivity, and reduce construction timetables. Perhaps most importantly, this process allows contractors to use fewer skilled workers, helping to alleviate the labor shortage. In addition, offsite construction improves safety conditions by minimizing construction hazards as it takes place in a controlled environment.

FI•CON offers fabrication and construction services for the most challenging projects. By combining these two services and our strategic engineering partnerships, we can design, construct, and customize a project to meet your building and fabrication requirements. We work in a wide range of industries, including manufacturing, ports, mining, education, warehousing, health care, retail, and water treatment. To discuss your next project, contact us at or (386) 792-3060.


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