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Outside Forces Could Slow Construction Growth in 2020. How Will You Be Affected?

Outside Forces Could Slow Construction Growth in 2020. How Will You Be Affected?

Everyone is nervous about what 2020 could mean for the construction industry. All signs point to the U.S. economy being unable to keep up with the industry’s continued growth in the new decade, but how will this impact contractors? And are they really powerless against these massive economic forces? 

Below, we explore the outside forces that could impact the construction sector in 2020. With economic uncertainty, owners will be less than eager to risk it all on doomed projects with bleak outcomes. Rising construction costs and a skilled labor shortages are just some of the other obstacles that contractors will have have to contend with in the coming years.

An Unstable Economy 

Construction Dive reports that business, economic, and financial issues have caused owners to back out of projects at an alarming rate. “15% of architecture firms in the U.S. have seen projects canceled, 40% have seen projects significantly delayed or put on hold and 30% have seen projects scaled back.” This is an unfortunate glimpse into what contractors could be in store for in 2020. While the South remains the strongest region in the country for construction, the industry may slow if the U.S. government fails to fund a comprehensive infrastructure package and ease the minds of nervous owners everywhere. 

Related: What the 2020 Budget Proposal Means for the Construction Industry 

Contractors and owners alike share concerns regarding rising costs, and both camps are being careful to only back projects that can ensure a good return. Just a couple of years ago, this caution was born from tariffs and rising material prices. Now, skilled labor is in high demand, and construction companies have had to raise prices and extend completion times due to worker shortages. 

Stepping Up for Your Industry 

Other concerns cited by Construction Dive include “historic levels of corporate and government debt, a lack of affordable housing in many cities and low business confidence scores.” We previously covered Central and South Florida’s affordable housing crisis and how aiding construction companies, not hindering them, is the key to solving this problem. 

Related: 3 Ongoing Lobbying Efforts in the Construction Industry 

As a contractor, you have little control over the outside forces that threaten the industry and, by extension, your company. Your responsibilities are to your business, your workforce, and your projects. But in order to safeguard your business, workforce, and projects, you must sometimes call upon the lawmakers who have a responsibility to this industry. If you are uncomfortable with sitting back and allowing outside forces to control the outcome of your business ventures, contact the team of lobbyists from Cotney Construction Lobbying.  

If you would like to speak with a construction industry advocate from Cotney Construction Lobbying, please contact us today.

Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.

Cotney Construction Lobbying, LLC does not provide legal services and any statements made on this website are intended to apply only to non-legal, lobbying services.