| 3 Hot Construction Trends for 2008
By Renée L. Pendleton, Cherry, Bekaert & Holland, L.L.P. (CB&H)
Email: rpendleton@cbh.com
 The construction industry is constantly changing, and contractors who want to succeed need to stay ahead of market trends. Economic concerns throughout the new year will, of course, continue to raise a number of new variables, but there are some notable trends that contractors should keep an eye on.
1. Housing the Boomers
As the first wave of baby boomers hits 60, the real estate industry stands ready to cash in by building a multitude of “active-adult communities.”
These developments, geared toward older adults, typically feature large residences with premium features, such as stainless steel appliances, high ceilings and granite countertops. Also, as the name implies, many active-adult communities offer a wide variety of activities for residents — everything from Pilates and cooking classes to whitewater rafting and skydiving.
How popular are these developments? Of boomers ages 51 to 60 recently surveyed by the National Association of Realtors, 47 percent said they “definitely or likely would consider moving to an active-adult community.”
If your construction company’s services are suited to one of these projects, start doing your market research now. That blockbuster job could literally be right around the corner.
2. Going Green
The environment matters. According to a recent study, almost half (48 percent) of public property owners (such as state agencies or commissions) in the United States have implemented construction projects with energy-efficient designs in the past year. And of those owners:
- 34 percent have gone green exclusively in new facilities,
- 24 percent have used green designs to renovate existing facilities, and
- 42 percent have implemented energy-saving designs in both new and existing facilities.
One interesting note: Owners in the education sector were more than twice as likely to go with green designs as those in other industries.
Green building has also gained ground among private owners. More than a half billion square feet of U.S. commercial space has been certified as “green” by the Leadership in Energy and Environmental Design (LEED) rating system, according to the U.S. Green Building Council.
So no matter what types of projects you typically take on, expect environmentally sound building to be an increasingly important skill set.
3. Sticking with Residential
More than two-thirds of builders (contractors who work on above-ground projects) and one-third of nonbuilders (contractors who use equipment for underground construction or site development) said that home and apartment construction will continue to be their best opportunity for the immediate future, according to the 2007 Construction Industry Forecast conducted by international project financiers CIT.
In fact, according to the CIT forecast, the number of builders favoring residential construction over any other opportunity has grown from 53 percent to 68 percent in six years. Then again, for the first time since 2002, 20 percent or more of both builders and nonbuilders see commercial construction as their best bet – a positive indicator for this lagging sector.
Staying Ahead of the Curve
Your construction company’s best opportunities will depend, of course, on a variety of local factors as well as national ones. In any case, by staying ahead of the curve in all respects, you can help ensure you’ll stay ahead of your competition.
Renée is an Audit Partner with CB&H and a member of the Firm’s Real Estate & Construction Industry Group. |
