Changes in construction employment are often viewed as an indicator of economic activity. Before a recession, the construction industry typically sheds workers, as developers slow their projects amid a slowing economy. From this perspective, the October jobs report would seem to represent a peak, as ... READ MORE >
The American housing deficit and what it takes to close it
Over the past 15 years, the United States has not built enough houses to keep up with growing demand. The problem intensified during the pandemic as demand skyrocketed because of the shift to working from home and historically low mortgage rates encouraged this move. We estimate that at the end of ... READ MORE >
How lumber tells the story of home building during the pandemic
RSM took a detailed look at gross margins across different peer groups to see how each has fared during this time of high inflation. In this article—part of a series—we examine margins for timber companies, lumber producers and homebuilders. Here is what we found. Lumber prices have had a tumultuous two ... READ MORE >
How construction firms can manage a fractured supply chain
Two years into the pandemic, the construction industry is still grappling with the fallout of the economic shock as builders scramble to secure raw materials and the workers to keep their projects on track. The whipsaw change over the past two years has fragmented the construction supply chain, ... READ MORE >
The hot housing streak endures: Spring 2022 outlook
The housing market, while strong, is hampered by limited supply. Home affordability is set to be challenged by rising interest rates. Builders continue to be constrained by the limited supply of materials and their rising costs. Read about other sectors The spring housing market might not be as ... READ MORE >
Biden’s $1.2 trillion infrastructure package and the construction industry
On Nov. 15, President Biden signed a $1.2 trillion infrastructure package—the Infrastructure Investment and Jobs Act—providing historic funding levels to improve public works, including roads, bridges, highways, internet access and the power grid, as well as to mitigate the effects of climate ... READ MORE >
How the construction industry can work toward a net-zero future
The construction industry has been resilient through the pandemic even as it confronts shortages of workers and raw materials, and rising inflation. But these challenges will pale in comparison to the ones that contractors will face as nations race to meet aggressive goals in reducing carbon ... READ MORE >
Lessons from the American Dream mega-mall
What happens when a real estate investor does not look at changing consumer preferences when undertaking a new project? More often than not, it ends in disappointment, and lost money. One project that is heading down this path is New Jersey’s American Dream mega-mall. The unfinished property, which ... READ MORE >
Why the housing market is not in a bubble
Key takeaways Unlike in 2007, the surging housing market is in no danger of crashing. Inventories remain historically low. Demographic changes will bolster demand in the coming years. Buyers today are more credit-worthy than in the 2000s. Household balance sheets are also much ... READ MORE >
How an ESOP can preserve a business, and a legacy
After more than a year of whipsaw change brought on by the pandemic, many business owners have decided to retire. A recent survey of business owners conducted by the Wilmington Trust found that the pandemic is behind this rush to retire, adding another unexpected wrinkle to a devastating year. But ... READ MORE >