For professionals in the construction industry, the economic recession caused a dramatic disruption to business. In tough economic times, new construction projects grind to a halt, leaving builders and suppliers in difficult financial positions. As the United States continues to bounce back, construction will play an important role in full economic recovery.
The construction industry always has a significant impact on the economy. Construction projects are tied to businesses in a wide range of industries. A new building requires the services of architects, building suppliers, electricians, engineers, and retailers, just to name a few. When construction slows, it causes a drop in businesses for all connected industries.
As the nation begins to come back from the financial crisis of 2008, many people are looking to the construction industry to lead the economic recovery. As individuals and companies start new building projects, they create jobs across the country. These projects tend to help the economy both locally and nationally, creating a ripple effect across a range of industries.
The housing market, in particular, plays a crucial role in boosting the economy. When people purchase new homes, they also tend to make other big purchases, including furniture and appliances. As home sales increase, it creates opportunities for a range of service providers. Buyers and builders require the services of real estate agents, roofers, accountants, bankers, landscapers, and legal professionals.
In the past, the construction industry has been a key player in leading states out of tough times. This time, the process won't be as straightforward because the housing market was one of the reasons for the economic crash. The rate of foreclosures skyrocketed and the housing market bottomed out with surprising speed. Though the market has begun to recover, it is not doing so at a rapid rate. Recent gains are positive, but they come after years of decline; as such, recovery will be a long, slow process.
For people in the construction industry, recent reports of growth are a promising start. According to a news release from the Bureau of Labor Statistics (BLS), the industry added jobs at an average rate of 10,000 per month in 2013. In December, employment in construction decreased by about 16,000 jobs, but the overall report for last year was positive. According to the BLS report, the cold weather in late December may have been partially responsible for the decline in jobs, which indicates that it is only a transitory concern.
Despite reports of slow growth, the construction industry is still expected to play a significant role in the recovery of the American economy. For industry professionals, it is wise to stay cautiously optimistic when determining business goals for 2014 and beyond.
(Photo courtesy of freedigitalphotos.net)
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