A new year is a time for new beginnings and opportunities. You can plan for your business by looking ahead at what experts are predicting the construction industry will bring for pros this year.
Last year, we saw the construction industry grow and reported trends show that continuing into 2017. We’ve rounded up what predictions pros need to to know in 2017 to help you get ready for the new year ahead.
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Overall Construction Forecast
According to Dodge Data & Analytics, they predict the total U.S. construction starts to grow 5% to $713 Billion, after a brief slowdown in 2016. This is a less aggressive prediction compared to the 13% of overall construction starts forecasted for 2016. Dodge Data & Analytics reports an estimated 1% construction gain in 2016.
“Although the global economy in 2017 will remain sluggish, energy prices appear to have stabilized, interest rate hikes will be gradual and a new U.S. President will have been elected,” Robert Murry, chief economist for Dodge Data & Analytics, said.
They predict this slow growth to continue into 2018 and then a slowdown as 2019 approaches.
Good news for pros, the report also includes predictions for single-family housing. Dodge Data & Analytics annual report also included that they expect single-family housing to rise 12% in dollars and 9% increase in units. This is attributed to millennials getting older and looking to move or expand their homes to fit their lifestyle.
According to CBS MoneyWatch, the millennial generation is reaching the age where many begin thinking about family. Additionally, the baby boomer generation, where some are reaching their late-60s, will also be considering a move as they inch closer to retirement.
Additionally, the Joint Center For Housing Studies predicts remodeling to hit its peak in 2017. While rising home values have encouraged spending, there has also been a slowdown in single-family home expansions that is expected to impact the industry in the second half of the year, according to the report.
Construction Job Growth
As construction starts grow, so do jobs. Dodge Data & Analytics predicts moderate job growth in 2017. While this is a good thing, the skilled labor shortage has been a hot topic in the construction industry this year. Though all trends in construction point toward moderate growth, this is one trend where demand must be met. Here are the five states with the most construction jobs available, according to the Bureau Of Labor Statistics:
- New York
Trends To Watch
For builders and remodelers, it’s a good idea to keep an eye on what trends may impact your trade as much of this is driven by consumer demand. Here’s a few popular projects you may be seeing in the new year:
As we reported earlier this year, deck expansions are in. If you’re a decking pro, this is great news for your business. If you missed it, read Decking Industry Trends to see what homeowners are looking for.
A trend for a few years that will be reaching its peak in 2017 is sustainability. You may find more customers looking for recycled materials or efficiency solutions for the home. Educate yourself on the latest innovations in home sustainability so you can recommend the best and the latest to your customers. While sustainability measures can be found in any trade, window, door and plumbing pros should pay specific attention to new innovations in their field.
Updates For Aging
As baby boomers begin to move, they’ll be looking to upgrade their homes to accommodate aging. This may mean larger doorways, handlebar installations and larger remodeling projects that can help accommodate all. Accessibility will be a big focus in home building and remodeling this year. Remodeling pros should be aware of this trend and how they can assist customers looking for these features.
With new innovations in home technology, you should expect to incorporate these into your work. Educate yourself on the latest home automation products and how you can help homeowners make their lives a little easier.
How To Prepare
The trends this year show moderate growth in the industry. If you find yourself busier than usual this year, remember to stay organized and make customer happiness your first priority. Here are a few tips to help you make the most of 2017:
- Create your marketing plan. This is a great way for you to set goals for the year to grow your business and track how you will achieve them.
- Make a resolution this year to make 2017 your most productive and organized year yet. This will help you focus on getting the job done.
- Join an organization to help you network and learn more about innovations in your trade.
- Consider new ways you can grow your business.
- Always remember to provide exceptional customer service, as that is what drives customer loyalty.
While these are just predictions for the new year, remember anything can happen. Be prepared for the unexpected and follow along with industry headlines to see how things may change for your business.
What trends are you predicting for 2017? Share with us in the comments below!