In an economic environment that has been ideal for job growth, the U.S. construction industry added 23,000 new positions in September 2018, according to an Associated Builders and Contractors analysis of data released by the U.S. Bureau of Labor Statistics. Over the past 12 months, the sector has added 315,000 jobs for an overall increase of 4.5 percent. Skyline Builders Group co-founders Nick Coady and Greg Coadyrecently spoke on construction’s impressive growth through 2018 and discussed the industry’s outlook over the next decade.
“For several years, job growth has been just right — not too hot, not too cold,” said Nick Coady, who is Skyline Builders Group’s co-founder and managing partner. “The term ‘Goldilocks’ economy is often used, with the implication being that employment growth has been solid enough to keep consumers spending and businesses confident, but not so fast that inflation and interest rates spike, causing asset prices like real estate to fall in value.” The result has been a steady influx of workers, with nonresidential construction employment expanding by 18,600 net jobs a month and the residential sector has been adding an average of 4,400 monthly positions.
When discussing the industry’s prospects moving forward, Greg and Nick Coady pointed to a report from the Construction Intelligence Center, which expects the pace of expansion to average 3.6% a year over the forecast period (2018 – 2022) – up to $12.7 trillion in 2022, from $10.6 trillion in 2017. The report reflects trends of the largest markets, most notably China and the US. Gain in global construction output in 2018 – 2019 is being primarily driven by the pickup in these two advanced economies, with combined growth in these markets rising to 2.7%, compared to 2% in 2017. Constructionactivity is also gathering momentum in emerging markets across Southeast Asia and Western Europe, where countries are investing heavily in infrastructure projects. These region’s output will expand by 2.4% a year on average in 2018 – 2022, improving on the slow increase of 1.1% in 2013 – 2017.
“Overall, we expect the global economy will continue to post healthy rates of growth in 2018 – 2019, and for investor confidence to remain buoyant,” said Greg Coady. “The expected tightening in monetary policy in major markets in 2018 will start to push up the cost of borrowing, but with interest rates generally at or near historic lows, this process is not expected to have a major impact on construction activity.”
Skyline Builders Group was founded by brothers Greg Coady and Nick Coady in 2005. Over the past decade, the Brooklyn construction services company has acquired a reputation as a leading builder in diverse market segments. By fostering innovation, embracing emerging technologies, and prioritizing a client-first focus, Skyline Builders Group is consistently the forerunner in completing high profile, complex projects across the world.
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