Three Trends Shaping Construction in 2017April 1, 2017
It’s natural to assume that all construction related trends would involve the actual construction process. However, the truth is that there are many things outside of this process that have a big impact on the style and quantity of houses and other projects that are built each year. We expect there to be an increase in home construction in 2017, along with a continual rise in market values. Additionally, there are three trends that are projected to be extremely influential.
Trend #1: Asian Market Competition
If you’re looking for a modular home, 2017 could be the year when you get a surprisingly good deal. Although home construction prices in general are headed upward, the Asian market has begun filling many orders for modular homes that are built off-site. As a result, U.S. construction companies that want to offer the increasingly popular modular option will need to deliver a quality product for a lower price. The availability of these frugal homes is also likely to have an impact on the price of on-site construction projects.
Trend #2: Market Consolidation
Oil prices have been escalating, and this makes it more difficult for smaller construction companies to remain profitable. President Donald J. Trump is expected to move forward with a $1 trillion infrastructure plan, which would provide a big boost to the construction industry. Unfortunately, experts believe this plan is likely to be on hold until at least 2018.
Some companies will end up being consolidated or folding altogether because they will be unable to wait for the anticipated increase in projects and capital funding. This is especially true due to oil price issues.
Trend #3 Tougher Contract Guidelines
Fulfilling each contract in an affordable manner is a necessity if a construction company wants to survive. Sadly, oil prices and the presence of the Asian market are only two of the many obstacles each company has to get past in 2017. In fact, the large emphasis on using public-private partnerships to finance major projects has the potential to greatly hurt many businesses. Although this probably won’t directly impact the home building portion of the construction industry, it will influence the entire industry.
Titles and New Construction
A title company may not be the first thing that springs to mind when you’re preparing to break ground on new home construction, but Lakeside Title Company can help ensure that everything goes according to plan. Find out more about our numerous title related services by visiting our homepage!