Twice each year, CMBA partners with the Minneapolis Federal Reserve Bank in their upper Midwest "Construction Sector Survey", including residential and commercial/industrial builders.  This fall's survey included responses from more than 300 firms. The Fed's Ron Wirtz presented results of the survey December 3rd during a morning webinar.

The Fed's Regional Outreach team surveyed construction firms across the Ninth District (upper Midwest, including MN, WI, ND, SD, MT and upper MI) to gauge recent construction activity and the near-term outlook in the sector. The survey examined: How busy were the summer and fall construction seasons? What do current conditions in the sector look like? How are falling interest rates affecting construction activity? What’s the outlook for the remainder of the year and coming winter season across the Ninth District?

Ron Wirtz kicked-off the webinar stating, "The best news I can share with you is that a number of the last surveys have been fairly dour. Now, we have very clear improvement in the survey results." Wirtz also cautioned, "I wouldn't say . . . things are 'good' across the [construction] sector, but they are better."

Key findings from this fall's survey show the construction sector is improving:

• Overall, solid improvement compared to a year ago
• Year-over-year comparisons are a moving target, so there is some caution in the results
• Revenue and profit trends are not great, but getting better:
  • Infrastructure and industrial are doing well
  • Residential and commercial still recovering, but seeing modest improvement
• Future activity giving mixed signals:
  • RFPs and project backlogs are still shrinking
  • Hiring remains healthy
• Inflation and wage pressures still present, but better
• Outlook is solidly optimistic

Slides from the webinar are available, and you can view a recording of the Fed's webinar.  For more information, click here, or contact CMBA Government Affairs consultant, Steve Gottwalt, steve@cmbaonline.org, 952-923-5265.

The Federal Reserve Bank of Minneapolis is also hosting its eighth annual Regional Economic Conditions Conference on January 15, 2025, virtual online, 9:00-Noon. The half-day conference will feature CHS Inc.’s President Jay Debertin, who will talk with Minneapolis Fed President Neel Kashkari about the economic challenges and opportunities in agribusiness. The conference will also feature presentations and panel discussions with representatives of each state in the Ninth Federal Reserve District (upper Midwest, including MN, WI, ND, SD, MT and upper MI). For more information and to register, click here.

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