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 us.
ABOUT OFFIT KURMAN
Offit Kurman is one of the fastest-growing, full-service law firms in the Mid-Atlantic region. With over 140 attorneys offering a comprehensive range of services in virtually every legal category, the firm is well positioned to meet the needs of dynamic businesses and the people who own and operate them. Our eleven offices serve individual and corporate clients in the Virginia, Washington, DC, Maryland, Delaware, Pennsylvania, New Jersey, and New York City regions. At Offit Kurman, we are our clients’ most trusted legal advisors, professionals who help maximize and protect business value and personal wealth. In every interaction, we consistently maintain our clients’ confidence by remaining focused on furthering their objectives and achieving their goals in an efficient manner. Trust, knowledge, confidence—in a partner, that’s perfect.
You can connect with Offit Kurman via our Blog, Facebook, Twitter, Google+, YouTube, and LinkedIn pages. You can also sign up to receive Law Matters, Offit Kurman’s monthly newsletter covering a diverse selection of legal and corporate thought leadership content.
MARYLAND | PENNSYLVANIA | VIRGINIA| NEW JERSEY | NEW YORK | DELAWARE | WASHINGTON, DC