By: Carolyn Chasteen, Construction Industry Expert – SBS Group Denver
For years now, the construction industry as a whole has been depressed, but the massive amount of damage dealt by Hurricane Sandy means that for the foreseeable future, there will be a glut of jobs. In virtually every sector of the construction industry, demand is higher than it has been in years.
After the collapse of the housing boom, the construction industry was hard hit, and lost many skilled workers. Nearly one-third of the jobs disappeared, with growth and new hiring well below the typical resurgence expected following a recession. However, recent damage from tropical storms has breathed new life into the construction industry.
The storms and winds associated with Hurricane Sandy resulted in over $50 billion worth of damage across the Northeast. No states suffered more than New York and New Jersey, but Hurricane Sandy affected 24 states across the eastern seaboard, stretching from Florida to Maine. The storm is, of course, an extremely unfortunate tragedy, but it has left areas across the country in dire need of skilled contractors, construction workers, architects, and virtually every other job associated with construction to rebuild.
The $50 billion of damage is spread across commercial and residential sites, requiring everything from plumbers to carpenters, and even workers in other industries, such as automotive and marine, to replace or repair vehicles lost in the storm.
New housing construction is also experiencing nationally high levels, as the inventory of available homes for sale hit the lowest levels in 6 years in October. According to the National Association of Realtors, 32% of homes sold in October were on the market for a month or less. This high demand has new home construction at its highest levels in years.
Applications for building permits are also at their highest levels since July, 2008, according to the commerce department. Construction is also up 82% over the lowest levels in recession in 2009, although it has not quite recovered. Fortunately, over the last few years demand for new construction has increased, so the industry nationwide should expect continued growth going forward. As your companies start to gain business over the next few months, it may be in your interest to invest in a construction industry solution. These solutions can help you manage your projects efficiently and estimate your job costs quickly. To learn more about SBS Group’s Construction solutions, contact SBS Group here or call 888.725.2555.