April 2, 2013
Construction Spending on the Rebound
Faith Technologies continues to experience growth throughout the United States, and we are seeing many of our markets gain more and more momentum. However, compared to economic upticks from a decade ago, does everyone really feel comfortable that the construction industry is ready for a boom? I, for one, am cautiously optimistic on what the future will hold for our industry. Considering the steep drop we experienced during the duration of the recession along with an extended period of economic uncertainty still fresh in our minds, I don’t think anyone can be assured that a strong recovery is in the future.
The Associated General Contractors (AGC) of America recently distributed a press release that indicates that U.S. construction spending is on the rebound. The article states that a total of $885 billion of construction was put-in-place in February 2013, up 1.2 percent from the downwardly revised January level. The February 2013 total was 7.9 percent higher than in February 2012. Residential construction, in particular apartment buildings, leads the way with a 20 percent year-over-year increase.
This information lead me to take a closer look at the economic state of the construction industry through the first quarter of 2013. The severe downturn we had experienced just a few short years ago now seems to be in our rearview mirror. So I ask you the following: do you believe we are on the cusp of an economic boom; are we going to see slow and steady growth for a number of years; or is there potential for yet another slide in the economy?