Glass-Related Construction Activity Remains Elevated

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.”