It has been a rough few years for construction equipment sourcing, as pandemic-related supply chain constraints and inflation drove up prices during busy construction seasons, but there are some signs that prices for used equipment are beginning to even out.

The recession that many economists are predicting has not yet come to pass, but construction industry executives foresee a shrinking market in 2023.

Construction activity has remained fairly strong in the fourth quarter of the year, despite continued challenges with inflation, labor and the supply chain.

After years of steady increases, wages for many craftworkers have jumped recently, pushed up by the pressures of a hot economy, high inflation and labor shortages.

Recession fears, inflation and other issues plaguing the economy in the first half of 2022 have persisted through the third quarter. While most construction sectors have been successful throughout this year, questions regarding what’s to come in 2023 loom large as we head toward the end of the year.

For much of the third quarter, watching the U.S. economy has felt like some strange version of Heisenberg’s uncertainty principle—the more you look at where the economic indicators are, the less sure you are about the direction the economy is heading.

While it may be too soon to say for sure, there are some early indicators that the steep prices for machines in resale channels may be leveling off.

Construction starts are once again increasing after a slowdown in the fourth quarter of 2021. But labor shortages continue, and after a brief decline, materials prices are again climbing, caused partially by the war in Ukraine.

Although ENR’s indexes measure the costs of non-residential buildings, the housing market has had a major impact on index movement.

With first-quarter construction starts trending above 2021 activity, the industry’s need to attract and retain talent is on the rise as well.<