Construction spending is expected to rise 5.5% from last year to $2.13 trillion in 2024, according to the JLL 2024 Midyear Construction Update issued on Tuesday. JLL had earlier forecasted total construction spending to be flat for 2024 but revised the estimate upward based on its indicators for building materials and general contractors’ bidding patterns.

Prices for insulation, concrete, bricks, doors and windows are still rising but at a slower pace in 2024 compared to last year, according to JLL. The cost of metal building materials is falling with an estimated 2.5% decline in 2024 compared to last year.

Additionally, many general contractors have burned through project backlogs and are now seeking to refill those empty coffers, said Julie Hyson, executive director of portfolio clients, services and industries at JLL. That’s led to contractors slicing their asking prices.

“There’s a fire in the belly of contractors that wasn’t there one or two years ago,” Hyson told CoStar News. “Constructors are more mindful of the need to build backlogs.”

In terms of project types, much of the growth is coming from the construction of data centers, semiconductor manufacturing plants, hospitals and sustainability initiatives, JLL said. But the growth in those areas is offset by slowdowns in office construction and other property types.

Large projects, sometimes reaching multibillion-dollar contract awards, are fueling much of construction firms’ growth. That includes Fluor winning a contract during the second quarter to provide engineering, procurement and construction management services to Eli Lilly for its $9.3 billion manufacturing plant near Indianapolis, according to the Irving, Texas-based company.

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