3 Signs the Construction Industry is Growing—and Why
Fund Control software can help your bank capitalize on construction growth.
As a construction lender, you no doubt watch construction industry carefully. Here are some of the broad trends in construction growth you may have already noticed.
Signs Growth is Happening
Increased Employment: Over the past year, over 200,000 jobs have been added to the construction sector in the US. In fact, many companies report they would like to hire even more workers but are having trouble finding skilled and experienced craftspeople.
Higher Project Spending: The total amount spent on new construction is rising, in residential and non-residential sectors and in public and private sectors. For example, experts predict that 2016 will finish with 7.4 percent more spending in private non-residential spending than we saw in 2015.
Increased Project Starts: In certain sectors such as retail, warehouses, and lodging, we’re seeing an increase in projects starts. Many people believe we will soon see expansion in other areas such as medical buildings.
Why Growth is Happening
Of course there are a large number of trends affecting the construction market in complex ways. But some of the most influential potential motivating factors for construction growth include:
Better Home Buying Incentives. The government has been working hard to shore up the construction industry by providing incentives for consumers to buy homes. They have been particularly targeting younger generations who have been slow to transition from renting to owning.
More Funding for Non-Residential Projects. Across both private and public sectors, we’ve been seeing an increase in funding for non-residential projects as businesses and organizations try to expand their operations to capitalize on recent economic growth.
More Interest in Green Construction. General interest in green, energy-saving buildings combined with government incentives for adopting green technology is driving interest and innovation in these projects.
Are You Ready to Capitalize on this Growth?
Capitalizing on the growth of the construction industry as we continue to recover from the recession requires agility. Projects that may have appeared quite lucrative before the crash—such as residential towers in Las Vegas for example—now barely have the potential to break even, much less turn profit for builders and lenders.
Our Fund Control software is one tool that can help you pick the right projects and manage them carefully for maximized returns. This software includes all the practical features needed to manage construction loans, plus some bonus features like robust stress testing tools that can help you evaluate the strengths and weaknesses of your portfolio under virtually limitless scenarios.
If you would like to try Fund Control for yourself, please contact us today and request a free, personalized online demo.
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