Reasons Why Construction Businesses are Still Viable | The Niche ...

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Some new numbers pertaining to the housing market are bolstering evidence that construction businesses are positioned to do very well going forward. Home building in the United States?surged in September?to the highest levels seen in more than four years. Housing starts increased by 15 percent. Compared to September 2011, new construction was up about 35 percent. The figures overall were well above expectations ? economists had forecast that housing starts would only rise 2.4 percent from the previous month?s numbers. This trend upward is proving to be a very important boost to the troubled economy. These numbers indicate the housing market could finally be getting back on track?and many are taking notice.

Construction businesses poised for the turnaround

Needless to say, this turnaround is also great news for construction companies. Spending on home construction and improvements has?boosted American economic growth. As of October,?home builder?confidence is at its highest level?since the initial dive the market took in 2006.?This news has given construction and landscaping businesses something to celebrate. While the overall economy and unemployment rates still might be daunting, these numbers in the housing market are definitely a bright spot. Many economists are predicting the recuperation could offer the economy a much-needed infusion going forward.

New businesses prefer new construction

It?s not surprising that new construction is one of the first industries to show signs of recovery. Higher-end businesses tend to prefer a brand-new or updated facility instead of leasing an existing structure as-is, especially in the commercial arena. Many of these businesses, especially franchises, have a specific building type and style they are known for. When they expand into a new geographic region, a new building will be needed. This bodes well for construction companies when it?s time to bring in the?wheel loaders?and start laying the foundation for a new building. Construction companies will definitely reap the rewards of a rebounding housing market.

Even if a brand-new structure isn?t needed in every case, the unavoidable truth is that all existing buildings will eventually need updates and maintenance. No matter how well they are built, every building will show signs of wear and tear over time, especially in climates with harsh weather extremes. If a company undergoes sudden growth, an expansion or addition to the existing facility will be needed.?Whether the housing market continues to improve quickly or gradually, the need for quality construction companies remains.

While it?s been a rocky six years for the housing market, the numbers reported in September and October offer hope for the industry and the entire economy. Overall, it?s a positive sign that construction businesses will be viable going forward.

Felicia Savage is a business writer & freelance graphic designer living in Indianapolis, IN. When she isn?t working, Felicia is adamant about networking at a variety of business conferences.?

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