The latest Q4 2024 MarketCAST report, released by the Associated Construction Contractors of New Jersey (ACCNJ) in partnership with Otteau Valuation Group, highlights a positive outlook for New Jersey’s construction sector. The report reveals a 6% increase in total construction spending in the state, with projected spending reaching record highs in the coming years.

New Jersey's construction sector outpaces national trends, with a 33% increase in construction starts compared to the 19% decline nationwide. The state’s resilience is particularly evident in the industrial sector, which saw a 312% year-over-year increase in project starts, driven by high-value projects in Salem and Middlesex Counties.

“The Associated Construction Contractors of New Jersey is proud to be part of an industry so integral to our state’s economic growth,” said Jack Kocsis, Jr., CEO of ACCNJ. “Union construction plays a vital role in shaping New Jersey’s infrastructure and creating safe, high-paying jobs. Our skilled workforce and commitment to quality ensures the construction industry remains a cornerstone of the state’s economic success.”

As of 2024, New Jersey’s construction spending reached $14 billion, with a projected 12% increase in planned spending for future projects, totaling $101.7 billion for projects over $50 million. This reflects a steady growth trajectory, reinforcing the state's position as a leader in the construction industry.

The rise in spending is attributed to several key factors, including loosening capital markets, accelerating capital deployment, increased infrastructure investment, and favorable anticipated changes to tax codes.

The future of New Jersey's construction sector looks promising, with strong pipeline forecasts and continued investment in industrial and infrastructure projects across the state.

Jack Kocsis, Jr., CEO of ACCNJ, emphasized, "Union construction plays a vital role in shaping New Jersey’s infrastructure and creating safe, high-paying jobs. Our skilled workforce and commitment to quality ensures the construction industry remains a cornerstone of the state’s economic success."

The ACCNJ report also highlights how New Jersey's construction industry has become a driving force in the state’s overall economic growth. Despite national challenges, the state’s construction sector has shown remarkable resilience, adapting to market changes and leveraging opportunities in industrial, infrastructure, and commercial projects. The rise in industrial construction, especially in Salem and Middlesex Counties, represents a key trend, reflecting the growing demand for warehouses, distribution centers, and manufacturing plants spurred by e-commerce and shifting supply chain dynamics.

The report further notes the importance of investments in infrastructure, with federal and state initiatives focusing on revitalizing aging roads, bridges, and public transportation systems. These projects not only improve the state’s infrastructure but also create a ripple effect in job creation and economic development.

The ongoing rise in planned construction projects, especially those exceeding $50 million, indicates a promising pipeline for New Jersey's construction industry. With such a strong forecast, the state’s construction sector is poised to continue its upward trajectory, contributing significantly to the state’s long-term prosperity.

Kocsis stressed, "The collaboration between union labor and the private sector remains vital to fostering the quality and efficiency of New Jersey's infrastructure projects. It’s a win for businesses, workers, and residents alike." The skilled workforce and comprehensive industry support ensure that New Jersey remains a competitive player in the construction space.

Originally reported by New Jersey Business Magazine.