The Potential Outlook for the Construction Market this 2020
Construction is a crucial business for many countries, cities and communities. Everyone needs to build businesses, facilities, schools, homes, and other structures that are essential to modern life. But like any business, construction has its ups and downs too.
Though it is a vital industry, economic, environmental and political factors can bring it up or down. Many in the industry often try to forecast what to expect from the construction market, and for 2020 it is no different. Here is some insight into what stakeholders and business owners should expect.
A Slow 2020
While specific niches in the construction business will still have a decent amount of work, the market for construction will be slower this year. The United States was able to grow after the recession of 2007-2009; however, the growth was not that significant. The growth has been steady, but this 2020 will have a slower pace.
The construction business itself may not be the only ones who experience less profit in 2020; engineers, electric contractors, along with other electrical professionals, will have less work since they rely on the construction market. However, there will still be a need for commercial excavation in cities like Salt Lake City in Utah, since most construction projects require this basic service.
But construction companies need not worry about losing business entirely. Most sources do not state that the outcome would be extremely devastating, but there would be less business this 2020. It might also not apply to many construction companies or city since each will have different needs. However, it would also depend on what specific market these businesses target. For instance, a residential construction business might be fine, but a commercial construction one may not do as well.
Booming Metropolitan Areas
Metropolitan areas such as Seattle and New York enjoyed a strong construction market in the past few years and is not expected to diminish in 2020. Phoenix in Arizona still has a good demand for residential construction. Many businesses might nor experience the boom of recent years, but they will not lose that much either. A business focusing on multi-family housing will not feel the crunch as the market of baby boomers will need more senior housing.
A Bounce Back
You do not have to worry too much about slow business growth. The estimated decrease in construction in America is at 4% for 2020, but it is a far cry from the decline of over 50% back during the recession. The dollar value for most things, such as commercial buildings, will also decline. Luckily, the year 2021 is expected to have a slight rise, so the construction markets might be able to make up for any losses during 2020.
While the year 2020 may not be the best for the construction market, it does not mean that your business will go bust. Keep these statistics in mind as you make a strategic plan for your company this year. Make the necessary adjustments, choose the right people, and expand your niche if you can so you’ll still retain your edge in the market.