ABC says construction recovery may still more than one year out
June 28, 2012
The woes of the construction sector may continue for another year, with the Associated Builders and Contractors' (ABC) chief economist Anirban Basu expressing doubt that the sector will improve much in 2013.
Many industry professionals had slated 2012 as the year the construction industry would begin to turn around, with 2013 furthering that progression. However, the national economy has similarly failed to recover from the recession, and many people lack the confidence necessary to commit to long-term building projects.
"We have capital and profitability in the broader economy, and there is money sitting in the banks," Basu said. "But many decision-makers have adopted a wait-and-see attitude until the sea of uncertainty that faces us recedes. This uncertainty includes confusion regarding the future path of federal spending, tax rates, the financial chaos in Europe and our own 2012 elections."
While many prospects are avoiding full-out construction projects, those who do have construction needs are investing in renovation work, which has helped to create some jobs for contractors over the past few years.