Infrastructure projects are highly sought by contractors nationwide. Industry forecasts are valuable tools for business planning and income projections. At Surety Support Services, we prepare our agents to meet the needs of their construction clients. This month we take a look at two industry reports that give great insight into 2019 construction opportunities.
Summary of Dodge Analytics 2019 Construction Forecast (Oct. 25, 2018):
- In general, the construction industry should see a modest 3% growth.
- The source of most government spending will be at the local level due to municipal bond initiatives.
- Institutional building in 2018 showed a 1% gain, but 2019 should advance to a 3% gain.
- Educational building should continue growing in 2019
- Healthcare projects actually retreated in 2018 but it is expected they will rebound and show modest growth in 2019.
- Transportation projects are stagnant, holding at the 2017 and 2018 levels.
Economists’ State of the Construction Industry 2019- Summary (Feb. 11, 2019)
- Bridge and highway construction rebounded in 2018 and will see a slight increase for 2019.
- States are allowed to take up to four years to obligate federal funds. As a result, 2018 federal allocations to states will keep the construction pipeline flowing in 2019.
- Federal allocations combined with state funds raised through new fuel taxes and tollways will mean a modest 1.5% growth in bridge and highway construction.
- Commercial building is expected to see modest growth with exact projections undefined.
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