How is the Construction Business Really Doing?

At Leon Williams Contractors, we are excited about the outlook over the next few years in the commercial construction industry, especially in the greater Knoxville area.

Economists often treat new construction as a leading indicator. That means if new construction rises – or falls – you can expect the rest of the economy to follow.

In the three years following the economic downturn in 2009 all sectors of the construction industry took a major hit as building slowed to a snail’s pace. Institutional building, single-family housing, multi-family housing and commercial construction all saw slumps.

But over the past two years, all economic indicators show a slight uptick in new construction across all segments, including commercial construction which has jumped nearly 20 percent.

This year alone, commercial construction is leading all sectors with growth of more than 10 percent.

Nationally, non-residential construction reached $560 billion in July, up from $543 billion in January, according to the U.S. Census Bureau. That spending has fallen off sharply from a recent peak of $719 billion in October 2008.

Overall, commercial construction is probably at 75 percent of what it had been in 2006 and 2007, when it was running at a record pace.

Businesses again are looking at growing or updating older facilities and developers also have brought back projects that were mothballed during the downturn.

This is good news as non-residential construction activity on a local level, such as here in the Maryville and Knoxville area, should continue to improve.

As commercial construction companies like Leon Williams Contractors continue to grow, they’ll keep adding quality, skilled employees. There are nearly 100,000 job openings in construction with another 1.8 million expected to be added by 2020.

Leon Williams Contractors has spent many years building its reputation in the East Tennessee area as a qualified and reputable commercial contractor. We welcome your comments and feedback about our blog topics.

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