Data – information – is available to everyone. Even if you feel confident you know your business, its goals, and your industry, it’s difficult to know which information sources can deliver usable facts and figures. Construction data, including building permits information, is pertinent to our companies as well as our industry. But there’s another source of information you should investigate: construction spending.
Construction Data; Construction Spending Statistics
“Construction spending” measures the amount of investment in new construction. U.S. public and private sector new-construction spending information is used for economic forecasts and financial decision-making. The Census Bureau studies the construction value-in-place (VIP) every month.
Construction spending estimates include costs of:
- Architectural and engineering work
- Contractors’ profits
- Interest and taxes
- Labor and materials
- Overhead/miscellaneous
FYI: Construction Spending 2020-2026
Construction spending data has led to good construction forecasts for this year and beyond. However, doubts surrounding steel and other building material costs continue to be driven by tariff and supply uncertainties.
How You Can Use Construction Spending Information
If you think you’re a “small-time” company, then don’t bother evaluating U.S. construction data, including spending. And forget about following the global construction industry. That’s one way to guarantee your growth and profits remain small.
The only limitations you have are the business decisions you make. Here are two things you need to know:
- Timely, relevant construction industry information pertinent to where you work (your geography) is critical to your business.
- Global and national trends impact your local business.
Construction spending data can give you the information you need to:
- Assess monthly fixed costs (rent, salaries, utilities, etc.) vs. comparable businesses
- Improve your budget and money management, which:
- Keeps costs in-line with projections
- Leads to better decision-making for profit
- Captures a more realistic idea of revenue potential
- Compare industry trends with local economic projections and building permit data
- Determine if your rates are competitive and reasonable
- Develop a concise business plan
- Evaluate direct cost expenses (project-related labor, materials, subcontractors)
- Evaluate industry trends
- Identify cash flow variances based on time of year and competition
- Reinforce planning/financial goals (and adjust when necessary)
Our Success Depends on Yours
Construction Monitor believes data-driven decisions are shaping the global market for every industry, including construction. Our mission is to provide construction analytics and information you need for success. Call 800-925-6085 (International callers 435-586-1205) or contact Construction Monitor to learn more.