Nonresidential architectural glass- and glazing-related construction spending was still higher in June compared to the previous year, according to Key Media & Research (KMR), a leading information provider to the glass industry.
The value of nonresidential glass and glazing construction increased 11% from June 2022 to June 2023 at a seasonally adjusted annualized rate.
KMR’s glass and glazing spending figures are adapted and modified from private and public construction spending data, with proprietary weighting and models applied to industry-relevant subsectors.
On a monthly basis, overall nonresidential glass and glazing activity was nearly flat from May to June.
“The year-over-year increase in the value of ongoing glass and glazing construction shows continued momentum. The first half of 2023 was better than expected, and industry-related inflation is being reflected in the numbers,” says Nick St. Denis, KMR’s director of research. “We still anticipate more of a slowdown late in the year and into 2024, but it’s highly likely that 2023 as a whole will prove stronger than we expected.”
Commercial glass and glazing-related spending increased by 14% year-over-year, with growth coming from all relevant subsectors, including hotel, office and others. Institutional glass and glazing activity improved by 9%, as the healthcare and educational building categories remain strong.
“As strong as these numbers are, the year-over-year rate of increase is slowly coming down, and we anticipate that will continue through the remainder of 2023,” says St. Denis. “If the volume of work moderates a bit and pricing stabilizes, 2024 won’t be quite as exciting in terms of growth, but the value of activity should remain at healthy levels.”
Nick St. Denis is the director of research for Key Media & Research, parent company of USGlass magazine and USGNN™. For more detailed insights, subscribe to his free quarterly glass and glazing update HERE.