Permits A 16 Year Low Last Month

Tom M

If construction wasnt already slow whats going to happen come fall? They predict gas prices to reach $4./gal so that will only raise all the construction material cost even higher. I finally pick -up work for a couple months but I know many guys that are still slow. I hate to be negative but I dont think the housing economy can handle higher construction cost. The cost of doing business grows constantly as well.

Glasshousebltr

Yea .....but is the bucket of crap really half empty?

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Bob

concretemasonry

Contractors pass on costs and add an amount for profit (if lucky and smart).

Energy costs are not going to go down appreciably, especially oil-based costs because of the increased international demand from the high population countries. Europe has lived with much higher energy costs for years and they still have high perforance-oriented Volkswagens you cannot buy in the U.S. You see many BMWs and Mercedes in South America, China and India and they buy the same oil we do.

Construction-wise we are at a lower point because of interest rates that were too low, contributing to excessively expensive homes, false profit expectations (appreciation and TV glamour) and too many housing units in inventory.

Construction will repond and rebound in some manner after this or another low point.

The secret to real survival is not new - do not over-extend on equipment and overhead and separate equipment and activities between personal and business. The construction businesss will survive if there are enough people making enough money to have confidence in building.

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Dick

Engineer, designer and consultant recently active domestically and internationally on construction and design in about 35 countries.

Magnettica

Slow schmo.

Less than 5% are unemployed in America.

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concretemasonry

It all depends on what you count when you measure a condition.

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Dick

Engineer, designer and consultant recently active domestically and internationally on construction and design in about 35 countries.

Zero Punch

Well I don't know much about global economics but after 40 yrs in construction I have seen that there have been a few ups and downs. I look at different indicators for general construction check the want ads for architects and draftsman/cad workers and construction site superintendents. Also back when I was doing remodeling it picked up when housing when down. Though that was because of high interest rates gave folk pause from buying new and decided to do that addition or finish the basement. Then again, any guy with a pickup a skill saw and a hammer can get a job when things are booming but they don't necessary have the ability, skill to compete in a slow market.

Gordo

I was talking with my accountant the other day at lunch. He deals exclusively with contractors (new construct, remodeling, and commercial). He said many new construction contractors are folding and some are even trying their hand at remodeling . I have witnessed this phenomenon because the past three months we haven't landed many big remodeling jobs due to having our bids being undercut by 50% (by the new construction guys).

Now I'm hearing all the sob/horror stories from hos how their contractor has gone awol . Its just a cycle. The strong will survive the desperation of things. Steady the course.

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Looks like some pros were here.

Tom M

Years ago when I was out of High school I worked for guys who only worked for builders doing roofing, siding and gutters. They only worked for developers and employeed all the cousins,uncles and inlaws for 2 generations. I recently saw him at a local municipal getting a permit. He said he hasnt seen a foundation go in since october.

ruskent

I think its more media hype than anything.

KentWhitten

Usually, when the housing market slows down, other parts of construction pick up, like commercial and remodeling.

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If you correct your mind, the rest of your life will fall into place ~Lao Tzu

Custom Cabinetry - Portland, Cape Elizabeth, Scarborough, Kennebunkport, Yarmouth, Falmouth, Cumberland, Ogunquit, Maine

Salmon Falls Cabinetry

Magnettica

And of course commercial work IS booming. The new-work types taking all the remodeling work makes sense but firms like those won't last when they realize that remodel work is a whole nother ballgame and usually three times the cost to do. The experienced contractor in this type work will always win out in the end. The key is experience and knowledge in any construction field.

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