North America’s Largest Woodworking Event | Tuesday–Friday | August 6–9, 2024


Industry & Trends

Inflation Drove Subcontractor Spending up $97 Billion Above Plan in 2022

New research shows that U.S. subcontractors spent $97 billion more on materials and labor last year than they had planned in 2022, impacting their profitability.

It’s well-known that inflation has driven up the cost of just about everything but the figures from a new study of subcontractor spending puts a hard – and troubling – number on building and construction costs.

According to the third annual National Subcontractor Market Report from Biild, a construction financial support firm based in Austin, TX, subcontractor spending on materials and labor was $97 billion more than planned. The resulting cost increases drove profits down 57% on average for those surveyed, even as top-line revenues grew for 61% of the respondents.

Biild said that the majority of the survey group paid for labor and materials before they were paid, with two and one-half months being the average wait time until they received payment for their jobs.

But the survey reported that nearly two-thirds of those surveyed were expecting their businesses to grow in 2023, though they didn’t necessarily see any relief in operating expenses. One-quarter of the subcontractors who answered the survey, Biild said, reported they were having difficulties getting financing for their projects.


More Industry & Trend News

  • City Furniture Gets High Ranking on Wood Furniture Scorecard

    November 15, 2023

  • Design Magazine Domino Says Pinewood ‘Is Back’

    November 15, 2023

  • Japan Continues to Grow Its Mass Timber Structure Base

    November 15, 2023

Apply to Exhibit

Grow your business at the premier global woodworking trade show.

Exhibit at IWF 2024

Show Hours & Location

International Woodworking Fair
August 6–9, 2024

8:30 AM–5:00 PM
8:30 AM–2:00 PM

Georgia World Congress Center
285 Andrew Young International Blvd
Atlanta, GA 30313

Get Industry News & IWF Updates

Subscribe to IWF Network News.

Subscribe Now

Terms & Privacy Policy

© 2020 International Woodworking Fair, LLC Terms of Use & Privacy Policy

3520 Piedmont Rd NE #350, Atlanta GA 30305 | (404) 693-8333

IWF 2024 Add to Calendar

Sync IWF 2024 with your favorite calendar program.

Notification Message

loading … please wait