Construction Sector Sees Backlogs and Year-Over-Year Declines: Kiplinger Economic Forecasts
Commercial and industrial projects are affected by red tape delays and a skilled labor shortage.


To help you understand what is going on as the economy rebounds and what we expect to happen in the future, our highly-experienced Kiplinger Letter team will keep you abreast of the latest developments and forecasts (Get a free issue of The Kiplinger Letter or subscribe). You'll get all the latest news first by subscribing, but we will publish many (but not all) of the forecasts a few days afterward online. Here’s the latest...
Construction forecast. One way to measure the impact of the recent federal infrastructure bill: construction backlogs. In June, they held steady at 8.9 months, the same as in May. This refers to projects contractors have booked but haven’t yet started. In June, the backlog of infrastructure projects increased for the third straight month. It’s at its highest level in two years, due partly to a big rise in clean-energy projects.
Meanwhile, the other major construction categories, commercial and heavy industrial, are seeing both monthly and year-over-year declines as the economy gradually slows. Reasons for the logjam: government red tape, such as required permits and federal approvals, and an industrywide shortage of skilled construction labor.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Regulatory changes. Regulators are clarifying personal protective equipment requirements for the construction industry, after years of lobbying by labor groups and by the Occupational Safety and Health Administration's (OSHA) internal advisory committees. Changes will focus primarily on ensuring that PPE fits workers properly.
OSHA currently requires construction employers to provide workers with PPE that is high-quality. But the agency does not require the PPE to fit properly, which can make it ineffective or make loose-fitting vests snag, among other risks. The rule change will affect around 10% of the construction workforce. There are costs to transition, but PPE cost differences based on size are minimal.
This forecast first appeared in The Kiplinger Letter, which has been running since 1923 and is a collection of concise weekly forecasts on business and economic trends, as well as what to expect from Washington, to help you understand what’s coming up to make the most of your investments and your money. Subscribe to The Kiplinger Letter.
Related Content
- 13 Best Infrastructure Stocks for America's Big Building Spend
- 3 Infrastructure ETFs to Harness the Spending Boom
- Kiplinger Inflation Outlook: Easing, but Core Inflation Stubbornly High
- Biden Administration Considering Raft of Changes to Labor Rules: Kiplinger Economic Forecasts
- Shortage of electrical engineers to power labor market growth: Kiplinger Economic Forecasts
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

-
13 Answers to Pressing Social Security Questions
From smart claiming strategies for couples to tips on maximizing your monthly check, we have advice that can help you.
-
Keep Tax Collectors at Bay with Muni Bond Funds
Municipal bonds can be good insurance against inflation — and interest is tax-free. But as with all investments, understanding risk is key.
-
Blue Collar Workers Add AI to Their Toolboxes
The Kiplinger Letter AI can’t fix a leak or install lighting, but more and more tradespeople are adopting artificial intelligence for back-office work and other tasks.
-
America's Surprising Strengths in Manufacturing and Exports
The Kiplinger Letter Despite common perceptions that the U.S. doesn't build things anymore, American factories are still hard at work. A special report from The Kiplinger Letter.
-
Will State Laws Hurt AI’s Future?
The Kiplinger Letter Republicans in Congress are considering a moratorium on state AI laws. But it’s likely a growing patchwork of state AI regulations will be here for a while.
-
The New AI Agents Will Tackle Your To-Do List
The Kiplinger Letter Autonomous AI agents “see” your computer screen, then complete a task, from buying a concert ticket to organizing email. This opens up a world of possibilities.
-
AI’s Medical Revolution
The Kiplinger Letter Medicine is a field ripe for finding both exciting and practical uses for AI. The tech is already being used by doctors and researchers.
-
The Economic Impact of the US-China Trade War
The Letter The US-China trade war will impact US consumers and business. The decoupling process could be messy.
-
AI Heads to Washington
The Kiplinger Letter There’s big opportunity for AI tools that analyze MRIs and other medical images. But also big challenges that clinicians and companies will have to overcome.
-
The AI Doctor Coming to Read Your Test Results
The Kiplinger Letter There’s big opportunity for AI tools that analyze CAT scans, MRIs and other medical images. But there are also big challenges that human clinicians and tech companies will have to overcome.