The first quarter of 2020 is seeing many industry ups and downs; that’s not unusual. Despite a very healthy economic trend nationally, there’s still an edge of uncertainty.
What has been somewhat anticipated for the construction industry is real: Standard & Poor reports U.S. housing starts are flat. Homeowner renovations are doing well but expected to slow between 1%-3%.
The building materials industry will see solid strength in some companies no matter what S&P predicts for 2020. Flying-By-The-Seat-Of-Our-Pants, Inc. will have to smarten-up quickly because when times are tough, the tough look to marketing and advertising for survival. This decade’s building materials sales are going to be driven by construction data.
Why We’re Seeing a Slowdown
Tariffs on Chinese imports continue to be the elephant in the room, and negotiators are considering rollbacks. But an increase in tariffs could definitely hit us where we live.
The cement industry is dealing with CO2 emission cuts, primarily in Europe but we know that what impacts the construction industry “over there” is a good predictor of what’s going to happen here. The good news for concrete materials is many states are increasing funding for aging roadway repairs.
Millennials are becoming more conservative about premium building materials (floors, interior design in baths/kitchens) and are opting for mid-range materials instead.
John McManus in the January 6, 2020 issue of Builder magazine says building materials supplies are being influenced by “L” words:
How Applied Construction Data Builds Your Business
Before you begin tightening your belt and laying off employees, know that 2020-2021 will be a year for 1.5% growth in our industry. Any growth is good for business. That’s simply less growth than we’ve seen recently.
You can use this slowdown to play catch-up or use this time to cultivate your marketing and sales strategy. Request:
- Area-specific commercial, residential, solar construction leads
- Detailed statistics
- Geographic building permit data
- Project reports
- Real-time construction leads
You have building materials, and we do too. Let us help you build your business this year and beyond.