“The financial burden of material and labor has always been difficult to quantify, the full extent a bit hazy. Knowing that subcontractors spent an extra $97 billion almost feels like putting a face to a name,” the report reads. “For some, it’s the missing cushion in their profit margins. It represents 97 billion instances of subcontractors financing the entire industry, all while navigating uncertainty in their payment cycles and subpar access to capital.”
Even with high inflation rates in 2022, labor and material spending accounted for a larger bump in expenses.