We have heard all the doom and gloom in the construction industry, as everything just collapsed just as the real estate disaster occurred and triggered global economic meltdown and crisis. After the crash, it was literally a front page article every day in all the newspapers in the 18 months straight, needless to say, no one was interested in building, buying or even pulling permits for new projects. Well, it looks like we have finally turned a corner.
means that many of the articles we are reading about the construction, the contractor, construction management, construction or development is fairly positive. Production of construction equipment is up, and there are many recent large scale developments, other than the known exposure (so-called shovel ready projects) continued.
government statistics show us forward at the end of Q2 2010, as construction spending was up sharply in April 2010 from the previous March, and get this, it was 2.7% over all. Home Construction presented expenses in excess of 4.5% over the same period. Obviously, the US national development differently than most battered states, but the whole country showed improvement, which means that the policy is, and momentum is building, literally, we are building again.
Construction was really across the board this time, new factories, facilities, roads, infrastructure, homes, shopping malls, commercial, retail, etc. This recent uptick is the biggest gain in a month that I have seen in over 10 years , it is truly amazing, almost to the point of questioning the figures, we see there are very good in quite a few industries. We have been down one month to 4 percent almost all of 2008, 2009 and the first quarter of 2010 mostly
It is noteworthy that all this excess capacity space. retail and commercial office space that we have such an uptick in construction now. This means jobs and growth, that’s good. Most people are not expecting any full recovery until 2011, and again, we see some positive signs in the building now. The Construction Industry is also to have mixed views on confidence levels, but before it was all doom and gloom.
The trick now is controlled growth, which appears to be expected because of the difficulty in getting construction loans now. And in 2011 we will see interest rates go up again, maybe keep it at bay. Today we can smile, and considering these positive signals and by Q4 will know if this is a trend or just a blip on the radar. Please consider all this.