December 7, 2018

Construction industry expectations for 2019

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Predictions that construction activity will stay at a steady pace in 2019 doesn’t really sound very exciting. However, construction starts in 2019 will inch up to just over $808 billion from this year’s estimated $806.8 billion per Construction Dive. The economy is currently in a precarious tug and pull between growth stimuli like tax cuts and risks such as rising interest rates.

There are a few themes construction companies can look forward to and plan for in order to both capture opportunity in the coming year and prepare for the storm ahead.

This economy is cooling off from the elevated growth rates we have seen in the past several quarters, including 4.1% in the second quarter of 2018, the fastest pace since 2014.

This decline shouldn’t have a huge impact on the construction industry for at least a year to come. Construction spending levels are “rounding the peak” but basically, the levels of activity for 2019 are not that different than what we saw in 2018.

According to Equipment World, the head of consumer research at Moody Analytics, Christian deRotis, stated that while he expects continued growth for the US economy over the next nine months, it’s unlikely to continue much longer afterward.

Economic expansions simply don’t last forever. The current expansion in the US economy began in 2009 and is currently the fourth longest in history.

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