The construction industry has experienced a variety of different issues over the last decade. From the labor shortage to the slow adaptation of new technologies, it seems that the industry’s problems are at the forefront of every construction professional’s mind.
As Tampa construction lawyers, we are privy to all of these potential areas of improvement. However, this three-part article will address a light at the end of the tunnel for the commercial construction industry. Promising data for 2018 indicates that optimism regarding the construction industry is at a 20-year high. We will discuss the nature of the Construction Industry Forecast today in Part 1 and delve deeper into the survey data in Part 2. Part 3 will conclude the series with industry concerns, a link to the official report and webcast, and resources for the future.
Construction Industry Forecast
According to the 2018 Construction Industry Forecast, construction industry experts and executives expressed a degree of optimism regarding activity in nonresidential construction that hasn’t been seen in 20 years. These survey results, gathered and analyzed by Wells Fargo Equipment Finance (WFEF), point to myriad areas of projected growth and improvement.
For over four decades, WFEF and its predecessors have been conducting annual surveys to help gain insight into conditions, trends, and projected construction activity for the upcoming year. The 2018 Construction Industry Forecast marked the survey’s 42nd year. These surveys enable WFEF to take an inside peek at industry executives’ insights and estimates. Almost all of these industry leaders have been in construction for five or more years. Our Tampa construction attorneys stay informed of each year’s survey.
Survey results are measured primarily by the Optimism Quotient (OQ), the benchmark for industry confidence. The survey is nationwide, polling contractors, distributors, manufacturers, equipment rental companies, and other industry professionals. A score greater than 100 communicates a strong sense of optimism regarding increased local, nonresidential construction activity in comparison to the previous year. Measured, cautious optimism can be seen in a score of 75 to 99. If the OQ is below 75, this means that fewer construction experts say local activity will increase than say it will decrease, signifying a more pessimistic opinion of the upcoming year.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.