At Custom Aire, we recognize the importance of keeping our fingers on the pulse of our industry’s economy and the financial outlook. Staying informed on the changes, challenges, and trends of the construction industry allows companies to strategize, budget, and plan for growth, helping to mold the future of their business and its employees. What can we expect to see in the coming year?
The construction industry as a whole is predicted to continue growing in 2018 including services in the HVAC, plumbing, and sheet metal sectors with an overall estimated increase of up to 5% to $765 billion. Geographically, the south and west are expected to see the highest increase in construction. The Midwest region is estimated to see a healthy increase of 4%, and North Dakota specifically is estimated to go from 21% in 2017 to 4% in 2018.
An increase is expected in single-family housing, at 9%, and education and government at 6% are at the top of the list for next year; costs in the construction industry will also see an increase including labor (3 4%) and materials (2 3%). Better yet, unemployment is currently at 4.1%, the lowest rate since December of 2000.
What does this mean for you?
If you’re a business owner, a growing economy allows your company to perform at optimal production levels. When this level is attained, the most efficient use of resources and equipment is achieved and the flow of distribution is maximized to favorable potential.
Low unemployment rates signal positive future growth by businesses, which allows them to hire more people. However, the cost of employment will likely increase in order to make jobs more attractive to candidates, and lower unemployment rates can force smaller companies to opt for less-qualified workers to meet demand.
Consumer demands will be met by the optimal production levels companies are able to reach, resulting in a positive purchasing experience. The buying power of consumers is highest when people have more money to spend – a low unemployment rate tells us more are earning a steady income and therefore have more money to spend and increase the overall economic growth in the United States. Additionally, when employment is high, there is a lower strain on taxpayers to support those out of work through welfare assistance programs.
As an employee, a low employment rate means finding a job is easier, as more businesses predict markets strong enough to support expanding their team. Because jobs are easier to come by and markets are able to support a stable, long-term income, this also means businesses will need to increase wages offered to entice new employees.
A Future of Growth & Opportunity in the Construction Industry
In summary, the overall state of the construction sector expects to continue seeing growth in the coming year, and to have a demand for qualified skilled workers. If you’re a professional in the HVAC industry, are you taking full advantage of the career opportunities these forecasts will bring? Explore what options may be available for you here at Custom Aire.