08/26/2024
Is the construction industry SLOWING DOWN?! 😧
It sure seems like it and here's a few reasons why:
1. Everyone is worried about their $$$$:
Rising interest rates, inflation, and global economic instability have led to cautious spending and delayed projects. Many companies and governments have postponed large-scale investments, impacting new construction starts.
There are so many reasons why companies and municipalities are slowing on their spending. For a few reasons, not unlike 2007-2009, the amount of extra money through interest is outrageous. People are spending more and making less in the long run.
Banks will soon be failing and be handing out loans like they are free. This will be a sign of another major crash.
2. Supply Chain Disruptions:
Ongoing supply chain issues, including shortages of essential materials like steel, lumber, and concrete, have increased costs and delayed timelines. This has caused some projects to stall or be scaled back.
This happened a few years back and things did start to settle a little bit over the past few years, however we can see things starting to rise again to keep up with the demand of inflation across the board. They will continue to rise if we continue to spend money like we can just make more (we can apparently. Money is fake.)
3. Labor Shortages:
The industry continues to face a significant labor shortage, with fewer skilled workers available. This has resulted in project delays, increased labor costs, and a slower pace of completion, contributing to the overall slowdown.
Less companies have time to train new people because there are so few people as is, they need them to get to work immediately to fill the still steady demand.
Just because the industry is slowing down, doesn't mean work has stopped and more than ever, tradesman are retiring and moving into different rolls out of the field. Few new tradesman are coming in. Fewer than ever.
These factors have created a challenging environment for the construction industry in 2024, leading to a noticeable deceleration in growth.
What are your thoughts on this? Comment below.
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