recession

The Effect Of The Recession On The Construction Industry

A recession is a decline in general business activity. For the duration of a nationwide recession, a country experiences a slump in buying, selling, and production, and an increase in unemployment. A recession may also affect a particular industry or region. Traditionally, national recessions have also meant the end of relentless inflation or possibly even a fall in prices. An economic depression hurts an innumerable amount of people, particularly the employees who lose their jobs.
The recent recession has affected all areas of the UK’s national economy. In December 2008, the Custom Home Builders Prices sector diminished at its highest rate since records began. The biggest decline was recorded in house building, with the civil engineering and commercial sub-sectors also falling at record levels during that particular month. This meant that the Bank of England had to cut interest rates to reduce borrowing costs to the lowest level in its 314-year history.
Along with the decline in housing construction, the housing market has also experienced a slump. According to the Halifax bank, house prices fell by 16.2% in 2008, the biggest yearly decline since it first started keeping records in 1983. The benefit of this has meant that buying a home has become more affordable. However, obtaining a mortgage has become more difficult for a lot of people. The Bank of England confirmed that the number of approved mortgages fell to a nine-year low of 27,000 in November 2008.
Simply put, the last few years of economic recession has had a huge affect on the construction industry, more than many other industries. To simplify the business jargon, the construction industry has seen a reduction in the demand for new constructions. House prices have fallen because of the same reason; that being diminished demand, leading to property owners having to cut their asking prices to entice buyers.
For the reasons stated above, it is imperative that in the current financial environment, businesses in every industry continue to be competitive; though it is also important for businesses to be prepared, in every sense, for the forthcoming upturn that is inevitable in order to take full advantage of the situation.
To put everything into perspective, the fact that the sustainability of the Civil Engineering Companies Near Me industry is at risk in times of recession is no secret; and there will always be continuing employment, or more specifically, unemployment problems, as is the nature of the construction industry. The only way to help overcome these problems will be to expand. Having more assets and financial resources means that a business has more economic sustainability when fiscal downturns ensue.…

Recession Proofing Your Construction Career

When a recession hits, it creates a chain reaction. First, companies struggle to profit from their goods and services. This forces them to streamline their operations, which results in the discontinuation of some services or products and, in most cases, employee layoffs. When employees are laid off, their family incomes are decreased or lost altogether depending on the number of working people in each household. Families with members that are out of work reduce their budgets, which mean buying less and living within or below their means. This also takes people out of the market for buying new homes. When homes aren’t sold, the real estate industry takes a hard hit, especially the Subcontractor Vs Independent Contractor arena. Construction specialists struggle to find work during these periods but those with the proper education can give themselves an edge that will keep them competitive and employed during these tough times.
Earning a construction management degree can put a person ahead of other candidates in the construction field because it shows that they know the basics of building construction and that they have a foundation to build upon. Construction managers are usually responsible for the physical construction of a building or section if the work deals with remodeling or renovations. They usually work on behalf of an owner or developer, but construction managers can also be individual consultants. Working as a contractor gives people with this degree and experience the opportunity to earn a living when companies reduce or freeze hiring during tough times. Construction managers oversee the workforce, materials, and safety issues for employees and the communities surrounding each site. Understanding the high level perspective as well as the small details makes this job challenging yet rewarding.
To step into a Subcontractor Vs Employee management role, a person should have a good amount of construction experience that can be gained through apprenticeships or on-the-job training. There are many construction schools that offer degree programs in construction management. The courses taken will teach students how to provide accurate timelines for completion and cost estimates as well as give the technical training to use state-of-the-art tools and specialized industry software. Many online colleges also offer construction management degree programs.…

Why is My Business Booming During the Worst Recession For Forty Years?

I have a colleague who works in the How To Renovate A House Yourself industry, initially in the insulation industry and latterly in the glazing systems market. He’s a great guy and full of the joys of spring.
Talk to him about the merits of Pilkington K glass or ask him to explain window energy ratings and he’ll wax lyrical for many an hour (especially if he has beer in his hand!). How I admire someone who is so passionate and full of belief for the company in which he works.
Talk to him about the economic climate and how “safe” he feels at the moment and you’ll get a different story about how the Construction Contractor School industry in general is going through a hard time.
“Work in the public sector is holding up and that’s only to be expected as the government pledges to keep on spending and not make any cuts – well at least until after the election!
Construction in the private sector however is a different story and particularly is what’s called the domestic sector – that which is paid for by you and me. At the end of the day, when the average man in the street is worried about his job, the last thing on his mind is going to whether to build an extension to his house, add another layer of loft insulation or buy a new conservatory.”
Read the papers or indeed many of the other articles on this site and you cannot escape the fact that many companies (and not just in the construction industry) are having a bad time of it. The budgets have been done for next financial year, the revenue forecast is poor due to a lower selling price and input costs continue to rise on the back of the price of oil so there’s only one way to make ends meet and that’s is to reorganise and cut heads.
The publicity of redundancies leads to a lack of confidence in job security and we tighten our belts, is it any wonder that the average man of woman in the street is not spending as much as they were a couple of years ago.
So given all this doom and gloom, why is it that business is booming for me? Ok, my business is not quite in the same league as some of those in the construction industry but the same rules apply – and this is where I have been focusing my attention for the last two or three years:-
Customer Focus
Ensuring that every product I supply arrives on time and in full based on my customers initial request and not the delivery date finally agreed. Ultimately if you get it right then of course the two dates are one and the same.
Keep The Overheads Low
It is very easy when times are good to spend more money on premises, people or other investments. I always apply the same decision making rules to expenditure …

Is the Recession Really Over? And When Will it Help Construction?

Our tried and true friend, Ben Bernanke, has made some interesting comments about the state of our country’s economy at a time when the state of our economy closely resembles the state of a dead raccoon that two weeks ago ended up on the wrong end of a dump truck. Bernanke went on record saying that the global economy was emerging from recession.
But when Ben? When? Last time I checked (4 seconds ago), the US unemployment was at 9.7% and all projections that I have seen are showing unemployment to be over 10% through the first quarter of next year. I suppose GDP is a more accurate measure of economic growth, but without jobs, increased GDP will probably only help those of use that are lucky enough to be getting a pay check instead of ranting about the economy over a domain name they buy for $8.50 a month.
US unemployment rate actual Can A Journeyman Electrician Be Self Employed and forcasted:
The worst part about this situation is that, for those of us in the Construction Electrician Companies industry, an improved economy will not help us out too much until further down the line. In order to start a construction project, you must first get financing from the bank. The banks hold the cards like Chris Moneymaker in the World Series of Poker. And lately, they’ve been folding even with three of a kind before the flop.
So suppose you deal the bank a royal flush and they decide to wager a few chips on your project. The slow design and permitting process must then begin and nearly end before the drawings can go out for bid, contractors are selected, and the work actually gets going. This is what causes the “lag” in the construction industry as the economy improves.
But what about “shovel ready” projects? I think this term is misleading, and certainly over-used. Unless you are filling potholes, there are really few projects that are truly shovel ready. If plans have been shelved for several years, in the very least the existing conditions have to be verified and brought up to date. What construction has taken place since these plans were generated? Has there been erosion, or effects of weather? What maintenance issues from existing structures have arisen and now need to be dealt with? What code requirements have changed since the initial design? Are the LEED certification requirements the same as they were when the plans were generated?
All of this stuff takes time. So even with a project that was shelved for several years, we can’t just pick up the plans grab, our shovel and hard-hat, walk out the door, and start whislin’ Dixie.
The bottom line is that construction is a lagging beneficiary of economic growth, so if we are just now starting to show signs of activity in the economy, we may have quite a while before contractors start hiring again.
But have your shovel shined up because when it turns around, …