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Texas construction costs likely to be high in 2023

AUSTIN (KXAN) — The construction firm believes there will be more projects like housing and transportation in 2023, but says it needs public funding to make sure it happens.

Stephen Sandherr, Chief Executive Officer, Associated General Contractors of America, said:

According to the association, many of the survey respondents are anticipating the impact of new federal moves in infrastructure and construction, including funding from the Bipartisan Infrastructure Act, CHIPS Act and the Inflation Reduction Act.

“In addition, many state and local governments are increasing their construction budgets.
They are benefiting from a strong economy and inflows of COVID-related federal funds,” the outlook report said.

Sandherr also said rising interest rates will affect demand for multi-family projects.

According to AGC’s 2023 report, construction companies are less confident about growth than they were a year ago, with expectations for multifamily and warehouse construction dropping most sharply.

Sandherr said supply chain issues have driven up the cost of many construction materials and delayed deliveries.

“What makes things complicated is that these supply chain challenges are volatile and unpredictable. This makes it difficult for contractors to develop reliable cost estimates and predict production schedules,” he said.

Contractors cite those costs, as well as rising costs of financing and insurance for projects postponed to 2022, many of which have yet to be rescheduled.

The association also noted that most contractors expect it will be difficult to find workers, even though 79% of respondents in Texas said they have increased wages.

In Texas, 43% of contractors who responded said they expect hiring to remain difficult in 2023, according to an AGC report. 36% said it will be the same in 2022, and 10% said he will be even harder to hire in 2023. .

What does this mean for Austin’s 2023 outlook? Check back for updates.

https://www.kxan.com/news/texas/2023-outlook-texas-construction-crews-are-banking-on-public-funding-to-get-more-housing-projects-off-the-ground/ Texas construction costs likely to be high in 2023

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