When the COVID-19 pandemic first hit in early 2020, many fleet managers took a wait-and-see approach, hoping that the year’s construction season would not be lost entirely.

A record 62 cargo ships wait to dock at the ports of Los Angeles and Long Beach as of Sept. 27, stuck floating off the California coast amid a supply chain crunch impacting contractor bottom lines for more than a year.

Labor rates remain relatively steady despite pandemic upheavals, but analysts noted some short-term adjustments to compensation by construction employers in 2020 with ongoing labor shortages continuing to pressure wages.

Worries over price inflation and persistent labor shortages have cooled optimism among construction execs, but overall confidence in the market remains strong.

Following a period of strong recovery, construction activity has begun to cool, largely due to emerging COVID-19 variants, high materials prices, a worker shortage and other challenges.