The higher interest caused private real estate investment to decrease. Therefore, construction companies expect public works projects could soar to maintain their operation.

CEO of the Association of General Contractors of America indicated that even though the market demand keeps evolving, contractors will still have to face the existing challenges in 2023, including supply-chain problems and labor shortages.

The contractors kept a lower optimistic attitude toward private sector projects in the following years, especially retail, office, and hospitality, which are still recovering from the epidemic.

On the contrary, the public project would be the most optimistic in 2023, especially transportation projects, water and sewer projects, and federal contracts in general. The reasons were public dollars were always supplied during or after the economy was in recession. Part of the dollars for public projects might be transferred to solve the epidemic issue, which could ease the impact of any recession this year.