Spending in private sector grows with market improvement
August 09, 2012
The Associated General Contractors of America announced that last month saw the highest levels of spending for construction since the end of 2009, a sure sign that the industry is finally turning around. The global economy may still be struggling, but private investors in the U.S. are feeling more bold than in months past, putting more money into building endeavors.
Construction and Demolition Recycling Online reported that private spending in June had come out much higher than public projects, meaning that more individuals were putting their own money into commercial and private real estate builds. Construction companies are continuing to see that trend, with most money coming in from businesses rather than local or state government. Infrastructure maintenance has always been one of the staples of construction management, but these projects are slowing down more every year. While road building is still a priority, water and electrical systems need work, too.
It's possible that these could come up in coming years, but Real Estate Weekly projected that private funding will continue to lead the public sector dollar-for-dollar at least through 2013.