As we wrap up 2023 and peek into 2024, let's have a real talk about the construction landscape. It's been a rollercoaster, hasn't it? With buzzwords like "recession" and "economic downturn" flying around, it's natural to feel uneasy about the future of the industry. But, we're a resilient bunch, and there's a lot we can do to navigate these choppy waters.

First off, the construction sector isn't immune to the hiccups of inflation, labor shortages, and those pesky supply chain disruptions. And yes, the experts are predicting more slowdowns thanks to those supply chain issues, rising costs, and high-interests rates. These challenges are not disappearing overnight, so its' crucial to stay sharp and find ways to keep the projects rolling smoothly.

The big question isn't if contractors will weather the storm, but more how well they do it. Let's dive in:

LABOR SHORTAGES
Everyone is feeling the pinch here. Finding and keeping great workers is tough, and the construction industry is feeling the squeeze particularly hard on this one compared to other industries. The demand for skilled hands is sky-high, but there isn't enough skilled workers to go around. Last year's survey from the AGC of American showed 91% of contractors struggled to fill positions. And guess what? In order to keep up with demand, about 546,000 new workers need to be brought on.

SUPPLY CHAIN DISTRUPTIONS
Oh, COVID-19, the gift that keeps on giving, right? The supply chain is still trying to bounce back, and the Build America, Buy America Act is adding more pressure with sourcing U.S.-made materials, especially for those businesses working on federally funded projects. We're talking longer wait times for materials to arrive.

INFLATION & MATERIAL COSTS
Here's a number for you: construction input prices have jumped 37.7% since 2020. This year's increase is 4.9%, a bit less scary than 2021's 23.1% hike. The price tags on materials are all over the place, with some, like lumber, actually dropping, while others, like concrete and construction equipment, are on the rise. This has made renting equipment more popular than ever.

THRIVING DURING UNCERTAIN TIMES
So, how can we keep our heads above water? Adaptation is the name of the game. Many industry vets have weathered economic downturns like this before, and there's wisdom in that experience. Look for cost-cutting strategies, protect your assets, keep informed, and stay optimistic.

STAY ON TOP OF TRENDS
Knowledge is power, folks. Keeping up with industry trends and news helps contractors prepare and tweak their strategies. Think articles, reports, newsletters --- all that good stuff to keep your business in the loop (and MBEX is a great go-to source for all of the above).

Another great place to gain insights into the 2024 construction season, tune in to Construction Executive's 2024 Construction Economic Update and Forecast on Wednesday, December 13 at 1:00pm CST. Led by Anirban Basu (chief economist for Associated Builders and Contractors) and crafted with commercial constructors in mind, he will offer insights on challenges facing the industry, sharing data and insights on labor expenses, materials pricing, market-sector growth and construction spending, as well as the latest on inflation and if, and/or when we'll actually see a recession. Register for this one-hour, free webinar here.

PLAN FOR THE UNEXPECTED
Expect hiccups with supply chains. Here are a few pro tips:

• Order early to avoid delays.
• Have a backup plan for material shortages/delays to keep projects on schedule.
• Look for alternative suppliers and subcontractors, as well as better rates.
• Use security measures like cameras to protect your materials.

FOCUS ON YOUR TEAM
A project is only as good as one's team. Investing your workforce is key; here's a few ideas on how to support them:

• Competitive Pay: It's not just about the paycheck; it's a sign of your company's value. The best talents expect the best compensation. 
• Embrace diversity: Diversity isn't just good for ethics; it's good business. More diverse companies tend to be more profitable.
• New Recruitment Avenues: Hit up job fairs and trade shows to find fresh talent, with both inexperienced and well-versed backgrounds.
• Supportive Culture: A great work environment keeps great workers. Think safety, fun, and growth opportunities.

LOSS PREVENTION
With high material costs, safeguarding your assets is crucial. Security cameras and professional monitoring not only deter theft but might also snag your business an insurance discount. Protecting your assets is key to maintaining profitability.

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No one is denying we're in a tough spot right now, but this industry is resilient (remember how we powered through the thick of COVID-19?). By facing these hurdles head-on, staying united, and being smart about costs, our industry is poised to emerge stronger than ever.

Roll up those sleeves, finish 2023 strong, and let's show 2024 what we're made of.