Continued Economic Recovery with Help From Millenials and High Profile Professions

ConstructConnect’s report on where the Construction Industry is headed in 2017 is wide-reaching and insightful. In this post, we introduce facets of the report that pertain to the categories of construction we serve. For the full article, please click the link below.


“Residential Construction

In residential construction, the multi-family homebuilding segment has returned to a level of starts on a par with before the Great Recession. Single-family groundbreakings, while considerably better than they were in 2010, are still languishing below their previous ‘norm’.

There remains a great deal of lost ground to be made up in single-family construction. Many analysts are fond of calling this an accumulation of pent-up demand…(continued at link below)

Office Buildings

Private office building construction has been on a tear over the last couple of years. Vacancy rates have diminished to their best levels in a decade in most major urban centers. Many of the highest profile career designations that lease space have been registering strong jobs advances.

Compared with the ‘Big Dip’ in 2008-09, staffing with architectural and engineering firms, accounting and bookkeeping firms, computer and design services companies and with financial services corporations is vastly better. Only the ‘legal services’ profession stands out for its failure to recover. One possible explanation may lie with the Web. Many residential real estate transactions in America have shifted to the Internet, while also embracing a do-it-yourself methodology…(continued at link below)

Hotels and Motels

Investments in new and renovated hotel and motel facilities is almost always highly cyclical. Recent spending by owners in the lodging sector has been on the steep upward ascent of the curve.

ConstructConnect’s hotel/motel starts were up by half in 2015 versus 2014 and the BEA’s put-in-place numbers will be ahead by almost one-quarter in 2016. Improved prosperity within the U.S. is an incentive for both business and tourism travel.

The extraordinary strength in value of the U.S. dollar relative to almost all other international currencies is one counterweight to the optimism for this sector. For foreigners contemplating a visit to the U.S., the exchange rate effect on bottom line expenses has become a discouragement…”(continued at link below)

 

The full article can be found here: click here

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