Construction Industry Experts Expect Modest Improvement For 2013
With the new year upon us, many construction industry experts have published forecasts for what the remainder of the year will bring for the nation’s construction industry. While construction has lagged through the recession recovery, overall forecasts indicate a positive, though modest, improvement for 2013.
For example, McGraw-Hill Construction’s 2013 Dodge Construction Outlook predicts a slight increase in total U.S. construction starts over 2012. The report predicts that total U.S. construction start for 2013 will rise six percent to $483.7 billion, slightly higher than the five percent increase to $458 billion estimated for 2012.
“Despite the modest gains experience during the past two years, there are several positive factors to benefit construction, including low interest rates and improving market fundamentals for several project types,” said Robert Murray, McGraw-Hill Construction’s Vice President of Economic Affairs.
Other forecasts, like the one recently released by Associated General Contractors of America, specifically noted improvements in the areas of increased staff, higher bid levels, and expansion in the private sector.
“While many firms are still grappling with significant economic headwinds, the hard-hit construction industry should be larger, healthier, more technologically savvy and more profitable by the end of 2013 than it is today,” said Stephen E. Sandherr, AGC of America’s Chief Executive Officer.
Construction industry experts also sited a 10- 15 percent improvement in the multi-family housing and commercial markets, and a 5-10 percent increase in the manufacturing, power, lodging and healthcare markets.
While there is much to be optimistic about for a positive future, challenging economic times are not forever gone. Maintaining morale is more important than ever. Companies need to offer clear and open communication, remain flexible, recognize and appreciate the efforts of their employees to retain top talent, and help employees understand the challenges, goals and vision of the company moving forward. This one-team approach will also allow companies to use this time to improve their organization and work to ensure its continued success.