For the first time in years, it is difficult to predict what the construction market will do in 2015. Bull market operations exist from construction pros and trade contractors as a whole.
The following are questions that we are looking into for those belonging in the Construction Business Category:
1. Who will lead the future of the the construction industry? 2. Is the market going to sustain a construction boom? 3. Are material prices and supply going up too quickly? 4. Is technology being used on the job site helps in increasing production output? 5. To complete projects in a timely manner is there enough available labor? Some of the leading experts in the construction industry answer these five questions to help pros and contractors understand what to expect in 2015.
1. FINDING TOMORROW’S PROS Many baby boomers retire in the construction industry retire in large numbers, thus the need for a pipeline of future leaders and planning is an integral part in the construction business. It remains a primary challenge to finding and retaining:
a. Effective leaders b. Executives c. Craftsmen d. Workers In late 2014, a survey AGC conducted: a. 83 percent of the 1,086 contractors who responded said they were having trouble filling one or more craft positions
b. 61 percent of respondents’ companies reported difficulty filling professional positions — primarily project managers and supervisors.
“I expect these pressures to intensify in 2015 now that the unemployment rate for former construction workers has reached an eight-year low,” Simonson says.
We will not ignore areas where skilled labor is at a premium. As a result, this year of 2015 compensation costs are expected to rise quicker than they have in previous years.
“The industry is responding to pent-up demand for commercial projects that didn’t happen during the long recession,” McCarthy’s Lawrence says. “This translates to a growing need for new, highly skilled workers, especially in areas where the activity is greatest, like Texas, California and the Southwest — places where the recovery of the housing bust is going on.”
2. CONSTRUCTION GROWTH INCREASING Overall spending within the construction industry will be up in 2015.
FMI reported that 2014 saw a 7 percent growth in construction for an annual total of $972 billion. FMI, based in Raleigh, North Carolina, expects the growth to continue to $1.04 trillion in 2015. FMI is a provider of:
a. Management consulting b. Investment banking c. Development services a. Engineering b. Construction industry
From Mr. Brian Strawberry, research consultant for FMI said that, ““Growth in nonresidential construction spending is also very much tied to improving residential market conditions.” In 2014 , much of this growth is driven by private investment, as recorded with the exceptional performance in markets of:
a. Lodging b. Commercial c. Office d. Manufacturing
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