You May Be Surprised by Some of the Latest Construction Statistics
At ECL Software we are always staying up to date on the latest construction statistics. As a company that specializes in software for the construction lending community, if we did not keep up on the latest we would not be able to stay ahead of the curve when designing our new software.
Lately we have been surprised by how many in the construction field are surprised by some of the latest data. Read on to get a few tidbits that can help you move forward with your own projects. Then contact us at 800-625-5972 to request more information about our products and for a free demo.
Construction Spending Has Continued to Rise Since 2014
Just in the last few years, construction spending as gone from just over 12% of the GDP to nearly 15% GDP. This means that more money is being spent in the construction industry, though you may be wondering just where that money is being spent. Keep reading and you’ll find out.
New Construction on Housing Units is Rising
The boom in constructing new housing units has blown away the predictions. In fact, there are more than a million new housing units planned for construction in the United States by the end of the year. Compare this to just ten years ago when 2009 saw just over 580,000 new units built.
A Lack of Qualified Workers Continues to Be a Major Issue
While there is more money being spent on new construction than in previous years, the industry is slower than it could be due to a lack of qualified workers. In 2016, more than 50% of builders said they were suffering due to a lack of qualified workers. This has gone up even more since then, especially in positions that involve overseeing projects.
Construction Spending is Rising Despite a Decrease in the Cost of Materials
An interesting point that is surprising to many is the fact that construction spending keeps going up – by a little over 4% compared to last year’s statistics – while the cost of materials is dropping. Compared to last year, materials are down nearly 2%. Lenders would be wise to carefully consider what is causing this and if their clients can do more to keep costs down.
Workers Wages Are on the Rise
Of course, it stands to reason that when a job is in high demand, the wages will go up. According to the Bureau of Labor Statistics, earnings increased from the fall of 2017 to January 2018, the most recent timeframe for which they have released statistics. The rise is small, from an average of $29.09 per hour to $29.33, but of course it can have an impact on larger projects.
At ECL Software we are always standing by to help our clients get the most from our unique software. Contact us now at 800-625-5972 to get started.