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Wednesday, July 11, 2012

The Construction Industry Remains Optimistic


According to the Construction Association of Michigan's (CAM) quarterly business sentiment and expectations survey, we can remain optimistic as business conditions continue to improve.

Contractor sentiment suggests building activity increased to 65.6 in April from 60.0 in March. (Chart #1 all variables).  Meanwhile their expectations for continued growth into the next quarter remain optimistic and  increased to 71.9 in April from 68.5 in March. (Chart #2 all variables)

(Chart 1, Building Activity Increasing <50)




 







Despite the slowing economy as reported in the general media, Michigan regional contractors and construction managers experienced a 2.8% growth in bid requests this year. Awards in the near term are accelerating as contracts for new construction and renovations also increased by 4.8% between February and April 2012, over 2 times the amount experienced in the same period last year.   

(Chart 2 Expected Growth)









Input costs for materials are moderating while labor costs continue to be a challenge. The workforce remains steady to declining and expectations suggest labor costs are moderate with materials. Overall, the industry remains optimistic that it will experience continued growth which is great news for everyone in this region.



About Midwest Mosaic:
Midwest Mosaic, Inc. provides skilled ceramic tile installation services to the residential and commercial construction markets in the tri-state region near Toledo, Ohio USA, including; Detroit, Ann Arbor, Cleveland, Sandusky, Columbus, Dayton, Fort Wayne, and South Bend.  The company features market pricing with superior performance, more value for your money. Midwest clients include Kroger, the #1 US grocery, and Wal Mart, the #1 retailer, as well as many prominent private individuals.  Mosaic is led by Malcolm Campbell, MBA, IMI, CIT, LEED-Green Assoc.  Campbell provides articles such as these for insight into the current market conditions.





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