Economic Bounce-Back | A Positive Outlook for the Construction Industry

Busy construction site

We hear it from customers and prospects alike: “We’re interested in a field reporting, estimating, and/or historical pricing software, but we’re waiting to see how things turn out.”

We get it – businesses across the country are still reeling from a nearly three month shut down, and some are still waiting for their local government to allow the final stages of re-opening.

Here in Nashville, bars and restaurants are still receiving fines for serving more than 50 percent capacity, and everyone is still getting used to wearing masks in public. 

The construction industry, though deemed essential on the federal level, is still dealing with the shockwaves of the pandemic. 

Some states have shut down fieldwork, others have postponed lettings, and many companies have struggled to get field workers to return because they are competing with stimulus and unemployment checks. 

Though many economists are split, some experts do provide hope of an economic bounce-back, particularly for the construction industry. 

Just this week, Federal Reserve chair Jerome Powell said the US economy appears to be entering the “rebound phase” of the economic fallout.

Jobless rate decreases

Motley Fool Stock Advisor reported, “The combination of strong retail sales numbers and a potential breakthrough for treating severe cases of COVID-19 sent the Dow Jones Industrial Average (DJINDICES:^DJI) higher on Tuesday.”

Most surprisingly, May saw one of the largest job increases in history with employment increasing by 2.5 million, and the jobless rate declining to 13.3 percent. 

“It seems the damage from the nationwide lockdown was not as severe or as lasting as we feared a month ago,” said Scott Clemons, chief investment strategist at Brown Brothers Harriman. 

As for construction, many consider the industry to be a catalyst for economic recovery and job creation. 

Earlier this month, the House proposed a five-year, $494 billion bill that would increase highway investment by 42 percent. Support for the federal transportation stimulus has continued to gain steam and has remained a bi-partisan option for economic growth.

The Associated General Contractors of America has reported that construction activity in many parts of the country has returned to pre-COVID-19 levels.

Associated General Contractors of America

The economy is far from where it was a few months ago, but there are positive signs that we will climb out of recession quicker than expected, particularly with the help of our construction industry.

If you’re still stressed, we get that too. With everything going on, I find myself feeling like 2020 will never end, but also surprised that it’s already mid-June.

To our fellow construction professionals out there, we hope you’ll stay safe, healthy, and hopeful. 

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