Construction material prices increased about 20% last year. But the resumption of construction activities, rising renovation and remodeling activities in residential areas, and the money allotted by Congress to repair and replace the nation's bridges, should drive the construction materials industry’s growth.
Efforts to make the manufacturing of finished materials sustainable, and the introduction of smart technology to improve efficiency and user safety, bode well for the industry. Investors’ interest in this space is evidenced by the Invesco Dynamic Building & Construction ETF’s (PKB) 1.3% gains over the past week versus the SPDR S&P 500 Trust ETF’s (SPY) marginal returns. Moreover, the global construction and building materials market is expected to grow at a 5.8% CAGR to $1.28 trillion by 2025.
