Some recent economic forecasting at times sounded like weather reports of torrential downpours ahead, while looking outside at blue skies and sunshine. By most counts, 2017 was a good year for those in the construction sector. An informal survey of my clients, colleagues, and fellow construction and real estate professionals confirms that by and large nearly everyone had a very good 2017. This is supported by recent data. The construction sector added 11,000 jobs to construction payrolls in October 2017. And for 2017, overall spending was up 4% from 2016 in the construction sector.
As for 2018, most construction professionals we are in contact with are cautiously optimistic to exuberant for 2018, but what does the data tell us?
Goldman Sachs’ (via GS Research) global economic outlook is titled “As Good As It Gets”, and leads with “[f]or the first time since 2010, the world economy is outperforming most predictions, and we expect this strength to continue. Our global GDP forecast for 2018 is 4.0%, up from 3.7% in 2017 and meaningfully above consensus…the question is no longer whether output will overshoot potential, but by how much?” By and large, growth is expected across the board in the world economy, including the U.S. Further, the predicted growth trend in the construction industry will roughly match GDP growth as projected by the aforementioned GS Research report; as Dodge Data & Analytics and FMI peg 2018 growth in spending in the non-residential construction sector at 4% and 5% respectively. If these projections hold true, 2018 should be as good—or better than—2017 in the construction sector.
As with any projections there are a host of variables and assumptions—not the least of which is what tax changes are or are not coming out of Washington—but even so, most indicators point to another good year in the construction industry for 2018. Another year of growth would be a very welcome trend.
If you have any questions relating to this topic or other construction law matters, please contact Nate Fox at firstname.lastname@example.org
ABOUT NATHAN FOX
Nate Fox is a real estate, construction, and business lawyer. He represents developers, homebuilders, property owners, business owners, and construction clients in transactions and zoning and land development proceedings. Nate brings uniquely practical experience from his time as a project manager for two luxury homebuilders to zoning, land development, and construction matters. He has successfully represented and appeared on behalf of clients in the state and federal courts of Pennsylvania and New Jersey, as well as before various municipalities in southeastern Pennsylvania, the Lehigh Valley, and New Jersey.
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