An Optimistic Outlook for 2020 in the Commercial Construction Industry

//An Optimistic Outlook for 2020 in the Commercial Construction Industry

An Optimistic Outlook for 2020 in the Commercial Construction Industry

Although earlier in 2019 many economists expected the global economy to slow down in 2020, many contractors believe the demand for non-residential construction projects will continue to increase. The Association General Contractors of America surveyed over 1,000 contractors back in November of 2019 and learned that contractors across the country expect markets to grow in all 13 of the major construction project categories. Here are more details about the optimistic outlook for 2020 in the commercial construction industry.

Survey Results

Overall, 27-36 percent of the contractors surveyed expect there to be more work for them in 2020 in each category, while only 11-21 percent predict there will be less work for them this year. This suggests that most of contractors in the U.S. have an optimistic outlook about the commercial construction industry for the new year.

While the outlook was less optimistic in the Northeastern states, the general outlook for the industry was consistently positive throughout most of the states in the country. In contrast, the South had the most positive outlook of all the regions in the U.S.

Reasons for Growth

The construction industry has seen steady growth over the past five years, a trend that helped the industry bounce back from the 2008 recession. The flourishing tech sector, technological advances in construction, and heavy investments in infrastructure and renewable energy have all contributed to the growth experienced by construction firms in the country. The labor shortage and shifting U.S. trade policies both represent major obstacles for the construction industry, but contractors believe the industry will grow in spite of these challenges.

Areas of Growth

While contractors expect growth in all areas, they are the most optimistic outlook about the growth in the areas of water and sewerage, highway and transportation, k-12 education, and hospital construction. Other areas of expected growth include higher education, power, federal and public buildings, multifamily residences, retail, warehouse and lodging. With a net positive reading of 7 percent, private offices had the least optimistic outlook among contractors, though they still expect some growth in this area.

While there is some uncertainty in the economic outlook for 2020 as a few experts predict that a recession could begin this year, professionals in the construction industry expect the construction industry to continue its current trend of steady growth. Contractors are particularly optimistic about construction in the areas of sewerage, transportation, and education.

 

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By | 2020-01-23T08:46:07-05:00 January 23rd, 2020|Construction Blog|

About the Author:

The Birmingham Group has been serving the construction industry since 1967. Brian Binke took over the firm in 1995 and since that time, he has personally placed over 1200 construction managers and senior leaders, with company revenues ranging from $10 million dollars to the largest ENR 400 companies in the industry. Brian is an industry innovator, with a specialized skillset in construction. His keen understanding of business, the construction industry, and ability to effectively match and recruit top leaders has led to many accolades. He was ranked the #1 International Billing Owner in the construction industry for his own personal production and has been consistently recognized as one of the Top 10 International Billing Owners out of 800 owners worldwide. This includes owners across every industry. In 2013, Brian was awarded the #1 International Billing Owner within the entire network. For over two decades, Brian has been considered one of the most influential thought leaders in the construction industry. His business and construction knowledge are used as a resource for some of the nation’s most prominent publications. In the past year alone, Brian has been quoted in or authored articles for The Wall Street Journal, CBS News, MoneyWatch, Construction Today, ConstructionDive, United Rentals, Fast Company, Entrepreneur Magazine, American Express, Builder Magazine, and Human Resource Executive, among others. "I believe companies are a lot like sports teams. The team with the best players usually wins. It is my passion to deliver the absolute best talent to my client companies – the market’s top performers, the talent that every company wants to hire but which seldom seems available. To put it simply, I thrive on helping my clients build their Dream Team." - Brian Binke, The Birmingham Group
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