Construction Industry Update: 2024 Lessons and the Opportunities in the Year Ahead
The industrial and commercial construction industry never stands still, and 2024 was no exception. In a year marked by fluctuating material costs, evolving subcontractor dynamics, and shifting economic conditions, Penntex embraced the constant changes with our characteristic adaptability and dedication to delivering value.
Last year’s forecast anticipated 2024 would be a strong year as we continued delivering excellence in construction, with a particular focus on successfully advancing a substantial in-progress project pipeline. This included significant volume across both the warehouse/distribution and manufacturing sectors resulting from strategic efforts throughout 2023 to guide and support clients through project consideration and startup. While that prediction held true at Penntex, 2024 also emerged as another year of recalibration within the industry following the post-pandemic construction boom of 2022. Developers approached projects with caution as we all navigated cost variability, extended permitting timelines, and ongoing economic uncertainty. This environment required a focused and flexible approach to seize opportunities and meet client needs.
One of the most notable shifts this year was the resurgence of subcontractor availability. Unlike the bid scarcity experienced during the high-demand years of 2021 and 2022, we saw a significant increase in subcontractor bids throughout 2024. In fact, we have witnessed bid numbers climb in some trades from just two to over a dozen for a single project. This transformation within the industry has allowed developers to secure competitive pricing and added to Penntex’s depth of relationships within our trusted subcontractor network to bring the right teams to every job.
With market-responsive pricing and material availability improving as the supply chain has normalized, developers began to explore opportunities to plan and secure projects for future market demand, already awarding and kicking off projects expected to come online in late 2025 and beyond. At Penntex, our focus on building trusted, long-term relationships prioritizes supporting our developer partners at every stage of their projects—from initial planning and budgeting to final delivery. Our approach ensures we create optimized plans that maximize budgets and enable informed decision-making. This commitment not only helps our partners succeed but also strengthens our ability to secure project awards and maintain a robust project backlog.
Looking ahead, 2025 promises to be a pivotal year for commercial construction. The anticipated further easing of interest rates and improved financing conditions are expected to drive even more renewed activity, particularly in sectors such as light manufacturing and cold storage. Both sectors are poised for growth, presenting exciting opportunities for developers and builders like Penntex, who specialize in these types of projects.
Additionally, we have seen increased interest in the pre-construction and budgeting phases of project development as developers prioritize strategic planning to navigate today’s market complexities. At Penntex, we take our role as a trusted construction management partner seriously, recognizing that our involvement early in a project’s lifecycle is critical to its success. This responsibility extends to collaborating with developers during early evaluation and planning phases, providing support through initial estimating and due diligence.
In pivoting to provide more client services and deepen the value we can offer our partners, Penntex’s robust due diligence support is structured to help developers assess opportunities thoroughly before making key decisions. This includes evaluating site conditions, analyzing permitting requirements, and identifying potential challenges early in the process. By integrating these services into the pre-construction phase, we empower our clients to move forward with confidence, knowing they have a clear understanding of the factors that could impact their projects.
As developers aim to strike while the iron is hot—identifying the best timing based on supply conditions, labor availability, and market trends—they increasingly turn to Penntex to provide a comprehensive approach to early-stage planning. This growing reliance underscores the value of our strategic guidance in helping clients evaluate opportunities, secure favorable pricing, manage risk, and make informed decisions that effectively balance current conditions with future goals.
At Penntex, we are intentionally focused and dedicated to the regions we serve, and as a result, we build more than anyone across a wide range of industry sectors. By staying closely connected to our communities across Pennsylvania, New Jersey, Delaware, and Maryland, we are able to deliver high-quality, tailored construction solutions that meet the unique needs of our clients based on experience that deepens our understanding and connections critical to construction success. We have trusted relationships with the subcontractors and suppliers, know the local, regional, and state leadership, and fully understand complex permitting processes. Our team’s total engagement reinforces this commitment, including a deeply invested leadership team every client can count on to have a true pulse and understanding of their project.
As we step forward into the new year, Penntex is prepared to embrace new opportunities and navigate emerging challenges. With the combined efforts of our skilled team, trusted industry partners, and supportive clients, we look forward to continuing our legacy of delivering projects that exemplify resilience, innovation, and excellence. From our commitment to adapting to market changes to our focus on fostering meaningful client relationships, Penntex is poised to lead the way in 2025 and beyond. The construction landscape will continue to evolve, but one thing remains constant: our dedication to Building Better, together.