9 Areas of Growth for the Construction Industry in the Down Economy
The credit market crash has many folks feeling gloomy the past few weeks. And, while it is looking rough out there (we’re not here to sugar coat anything…) there are a few bright spots you can try to keep in mind the next time you’re in another conversation about how bad things look.
Dark Cloud With a Green Lining…
Green construction practices are increasingly in demand both from consumers and from governments. Here are some bright GREEN spots in this dark economy and here’s our guide to growing profits through green construction practices .
1) Green building construction in the US is projected to remain strong in 2008 and is projected to grow by 58% or more than US$21.2 billon during the year
2) 40% of builders find "building green" makes it easier to market in a down economy; 16% find it makes it much easier.
3) 60% of builders claim homebuyers are willing to pay more for green homes. This is greater than the opinion in 2006 (56%).
4) The regions in the U.S. with the best growth in green building are the Pacific, followed by the South Atlantic and Mountain regions. The East South Central region has the lowest growth.
Other Areas of Growth in the Construction Industry…
It’s not just "green construction" that shows promise for 2009. There are other areas too that have some sectors staying very busy right now.
5) Heavy construction companies in the US reported relatively firm results during the first quarter of 2008
6) Merger and acquisition (M&A) activity in the US remained at high levels during the first half of 2008
7) Construction equipment manufacturers in the US forecast smaller gains for 2007, but a rebound in 2008 as sales are expected to grow by 2.8% during the year
8) Heavy construction spending in the Pacific Northwest of the US is expected to grow in 2008 with gains in the transportation and building sector
The AGC-Supported Portions of the Emergency Economic Stabilization Act
The economic bailout package has some provisions that the AGC supported heavily. While you may not ever see the impact in your business, there are some construction-oriented benefits included.
9) The House package includes extensions of the Production Tax Credit for Alternative Energy Investments and the Targeted Relief for Investments in Real and Personal Property.
Bonus: Down Economy Advice
Here’s a quote from a recent article from Matt Stevens: “there are 10 rules of business. The first is to not run out of cash – and the rest don’t matter.” I highly recommend that you take a look at his article:
Managing a Construction Firm in a Down Economy.
"Brighter" Resources:
Green Building is Growing Despite Down Market, According to Report from McGraw-Hill Construction
HOUSE PASSES ECONOMIC RECOVERY PACKAGE (AGC)
"Darker" Resources:
North America Heavy Construction Sectors
Construction job market continues to decline nationwide
August Construction Retreats 3%
North America Heavy Construction Sectors: Company and Industry Analysis Report
