11/11/2008

Economic Slump Chills Construction

 
A recent report from the Washington, D.C.-based National Association for Business Economics (NABE) on third-quarter and expected activity in the construction industry shows distinct weakness. "Nonresidential construction is on the verge of a potentially long slide," says Ken Simonson, chief economist for the Arlington, VA-based Associated General Contractors of America (AGC).

A report on construction spending from the U.S. Census Bureau shows that nonresidential spending "eked out" a small gain (0.1 percent) in September, "but private nonresidential spending was down nearly 1 percent from its high-water mark in June, while public spending tumbled 1.3 percent in September alone," says Simonson.

He also notes that contractors have seen developers putting projects on hold because of the credit freeze and weakening demand for stores, offices, and other facilities. "Meanwhile, states had to postpone construction bond issues or defer budgeted projects in order to meet balanced-budget mandates," says Simonson.

"The NABE survey, conducted in October among corporate economists, found that companies on balance plan to trim spending on structures in the next 12 months," says Simonson.

The Census report and the NABE survey can be viewed at www.census.gov/constructionspending and www.nabe.com.

 


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Visit our website today to learn about the design flexibility of a Morton building and the endless possibilities of partnering with our designBUILD team.


Wood construction is both cost and energy efficient. Check out Morton Buildings and our designBUILD team online today to discover all the benefits of post-frame construction.


When choosing a metal-clad building for your next construction project, consider Morton Buildings, Inc., and their designBUILD team, we’ll make your dream a reality.

We Can Help You Reduce Energy by 30%

Our mission is to help our customers manage their buildings' energy costs, improve reliability, and enhance performance while having a positive impact on the environment.
CLICK HERE to find out how.

Bluebeam® Revu® simplifies digital facilities document management from design review to leveraging as-builts, maintenance manuals and O&Ms submittals.

 


 
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