The Wall Street Journal ran an article on the 29th citing the McGraw-Hill Construction forecast, and what appears to be good news for 2011: A projected 8% increase in the value of new construction projects.
Infrastructure projects like bridges, railways, and roads will not be the subject of this relative boom in construction -- federal stimulus money is running out, and few new projects will be undertaken in those categories. Instead, the projected rise comes mostly from new single- and multi-family housing, with an estimated $150 Billion in new value coming in the new year. Good for the industry, coming out of its lowest point in 2010, with the jobless rate in the construction sector at its highest in decades.
It’s a mixed bag, the forecast report: Infrastructure spending falls as much as single-family housing construction increases, but that's assisted by an increase in commercial building construction. The assumption the forecast makes is that employment goes up, and mortgage rates stay the same. 2011 is looking up, in a lot of ways, and the country should be able to slowly climb out from the bottom of the current economic crisis and turn things around. The value of the US dollar is dropping, and already the manufacturing sector is seeing slightly increased foreign demand for goods. Increased manufacturing capacity will also benefit the construction sector, and together, the road to recovery is at least visible.
Infrastructure projects like bridges, railways, and roads will not be the subject of this relative boom in construction -- federal stimulus money is running out, and few new projects will be undertaken in those categories. Instead, the projected rise comes mostly from new single- and multi-family housing, with an estimated $150 Billion in new value coming in the new year. Good for the industry, coming out of its lowest point in 2010, with the jobless rate in the construction sector at its highest in decades.
It’s a mixed bag, the forecast report: Infrastructure spending falls as much as single-family housing construction increases, but that's assisted by an increase in commercial building construction. The assumption the forecast makes is that employment goes up, and mortgage rates stay the same. 2011 is looking up, in a lot of ways, and the country should be able to slowly climb out from the bottom of the current economic crisis and turn things around. The value of the US dollar is dropping, and already the manufacturing sector is seeing slightly increased foreign demand for goods. Increased manufacturing capacity will also benefit the construction sector, and together, the road to recovery is at least visible.
Looking for a job in construction? Visit http://www.constructionjobforce.com/ to get started on the path to your new career.
Mike Wrightly is mostly diesel fumes and duct tape; he grew up around heavy equipment, and holds a Bachelor's degree in Mechanical Engineering.
Mike Wrightly is mostly diesel fumes and duct tape; he grew up around heavy equipment, and holds a Bachelor's degree in Mechanical Engineering.
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