How Does the Commercial Construction Industry Look in 2014?

As 2014 gets underway, Leon Williams Contractors is making plans for a busy year of commercial construction projects. We’re hopeful for some big projects around East Tennessee this year, but as we make our plans, we’re also keeping an eye on the overall commercial construction outlook for 2014. If you’re a developer, it’s also worthwhile to keep an eye on the upcoming trends.

There were a lot of different numbers that came out late last year regarding the forecast of commercial construction projects and costs. For instance, in October, McGraw Hill Construction predicted that commercial construction projects would be up by a total of 17 percent, with the majority of that being hotel and warehouse construction. The firm says store and office construction will also pick up the pace this year. A lot of the increase is attributed to improved market fundamentals and more lending for development, but total commercial construction spending will still be nearly 30 percent lower than its peak in 2007.

There’s even more good news if you’re hoping to work in the construction industry. Available jobs are up in several states, especially in commercial construction, and industry experts expect them to be even more plentiful as this year progresses.

Even after the start of the year, the overall construction outlook remains very optimistic. However, the majority of that comes from housing construction, a market that has seen a lot of growth since the economic recovery began.

Things may be better in the commercial sector, but there will still be some challenges to overcome. New brick and mortar retail construction is struggling to recover, as stores try to learn to compete with the online marketplace. And it will take more time to return to peak construction levels seen before the recession hit.

Whatever happens, we at Leon Williams Contractors will be watching the progression of the commercial construction industry very closely. We are excited about the prospects and what projects might come our way as things improve.

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