There was a time when construction seemed insulated from the economic turmoil affecting other industries, especially during the COVID-19 pandemic. When officials deemed construction an “essential” sector and exempted it from lockdowns early in the crisis, crews were able to continue working, largely uninterrupted.
But now, while inflation has subsided and supply chain struggles have largely eased, it’s clear that construction is not immune to the ultimate business equalizer: higher interest rates during a sustained period.
That was the main takeaway from the first round of earnings reports from public construction companies in 2024. While cash infusions from public funding have helped the sector enormously: backlogs for most of the eight companies we covered increased, continued challenges in the capital markets also put obstacles to sustained prosperity.
Just look at Skanska, where lower property value impairment charges weighed on the results. Or AECOM, whose otherwise upbeat profits were hit two chords are removed from their pipeline. Then there was Granite, the small ball approach it seems to be paying dividends, if only it can exorcise the ghosts of past legacy projects.
Read on for details on each of the public companies Construction Dive covers.
