Construction Industry Innovations

Decline in Commercial Construction Industry Endangering Specialty Contractors

Posted on November 2, 2011

The last few years have been anything but kind to the commercial construction industry, especially the Specialty Contractors they employ. Specialty Contractors are being forced to re-evaluate and modify everyday operations to adjust to the volatile economic market that is threatening their demand.

Opportunities are few and far between these days, and every opportunity, big or small must be considered. For the majority of commercial construction companies, their futures appear murky, at best. Businesses that have been opened decades long are most concerned of the looming future of the employment of Specialty Workers.

Through desperate efforts to stay in business, contractors are forced to take uncharacteristic jobs and must now scramble to stay competitive and profitable. Plenty of contractors have to cut their staff in half, or more, to merely survive. Even worse, several sectors of commercial industries are still in the midst of a downward spiral. A commercial construction stand still is often the best case scenario for some struggling businesses.

Timelines, deadlines, and budgets are all shrinking. Stress is more palpable, the workload is more demanding, and the competition more fierce than ever. Like all industries, success is measured by supply and demand. Right now there is just no demand for specialty contractors in commercial construction.

For example, Las Vegas and its commercial construction commitments in the last few years have been severely affected by the commercial construction drought. At one point they were building as far as the eye could see, littering the strip with hotels, shops, restaurants, casinos. Read more...

Trends in the Commercial Construction Industry

Posted on September 4, 2011

Mayor R. T. Rybak's 2011 budget address on August 17, 2010 must have brought cheer to the Minnesota commercial construction industry. The mayor, speaking from Minneapolis City Hall, put a lot of stress on "growth." He also rejected the popular belief that Minneapolis, locked in by other municipalities on all sides, is fully developed.He listed many areas capable of absorbing extensive growth.

Earlier in the year, John K. McIlwain, Senior Resident Fellow, Urban Land Institute, in a presentation to the trustees said, "The old 'normal' will not return. Over time, a new mode of metropolitan development will emerge, presenting opportunities and stiff challenges. Those who fail to understand these new trends will find themselves building what is no longer in demand."

While one is showing the way forward and pointing towards potential growth for the Minnesota commercial construction industry, the other cautions with words to be well-marked by Minnesota building contractors. The future will clearly be won by those that have taken advantage of the recession to reinvent themselves to a "new normal."

Consumer Behavior and Demographics

Trends indicate that the major drivers for new real estate development will be consumer behavior and demographics. At a time of scarce resources and increased competition, extensive planning with emphasis on aggressive workforce training are the areas that the Minnesota building contractors should focus on. Read more...