S.C. construction demand remains strong, but labor shortages tighten capacity

Strong demand continues to drive South Carolina’s construction market, but shrinking workforce availability and contractor capacity constraints are pushing project owners toward earlier and more strategic planning, according to a second-quarter report released by real estate firm LCK.

Population growth, business expansion, and institutional investment have sustained robust activity across the state in education, healthcare, industrial, residential, and commercial sectors. However, industry risks have shifted from securing financing to competing for labor, materials, and qualified contractors. 

While construction material prices have largely stabilized compared to post-pandemic highs, geopolitical events continue to generate short-term volatility for key supplies, including steel, precast concrete, and fuel-related products. At the same time, labor shortages, wage increases, and limited contractor availability remain the primary pressures on project schedules and budgets.

To manage rising costs and prevent delays, industry experts advise project owners to engage design and construction teams earlier, establish realistic budgets, and make timely procurement decisions.

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