The document summarizes the state of the construction industry in 2020. It finds that while the overall US economy experienced the most severe recession in history due to the COVID-19 pandemic, the construction industry was relatively unaffected initially. However, impacts are being felt in certain sectors and the overall effect on construction is expected in the next 1-2 years as the recession impacts construction backlogs and spending. It provides an overview of trends in the construction, broader economy and makes recommendations for how construction companies can prepare for challenges.
The document provides a summary of the state of the U.S. economy, construction industry, and surety industry in Q4 of 2018. It notes that the U.S. economy continues to grow with low unemployment, rising wages and corporate profits, and record high construction spending. However, it also flags risks such as rising household and government debt, a potential labor shortage, and market volatility. Regarding the surety industry, it reports stable loss ratios, modest M&A activity, and a decrease in the market share of the top providers.
VERTEX's CEO, Bill McConnell, PE, JD, MSCE, CDT, provides his annual outlook on the state of the Construction industry. The US economy has expanded, albeit slowly, for the past 8+ years. The construction industry, which over-corrected during the Great Recession, has rebounded with vengeance on the heels of record private construction spending. On the other hand, public construction spending was considerably less in 2017 than it was in 2006. Moving forward, all indicators suggest that private construction will slow while public construction spending will soon pick up steam. Also, all good things come to an end, and the current economic expansion will be no different—it is likely the US will enter into a mild recessionary cycle in late 2019 or 2020.
VERTEX's CEO, Bill McConnell, PE, JD, MSCE, CDT, provides his annual outlook on the state of the Construction industry. The US economy has expanded, albeit slowly, for the past 8+ years. The construction industry, which overcorrected during the Great Recession, has rebounded with vengeance on the heels of record private construction spending. On the other hand, public construction spending was considerably less in 2017 than it was in 2006. Moving forward, all indicators suggest that private construction will slow while public construction spending will soon pick up steam. Also, all good things come to an end, and the current economic expansion will be no different—it is likely the US will enter into a mild recessionary cycle in late 2019 or 2020.
This document provides an overview of the construction and surety industries in the United States in 2017. It finds that while private construction sectors are booming, public construction spending has remained flat. This trend is expected to continue in the coming years. The surety industry has remained profitable for over a decade despite flat premium growth, though consolidation in the industry has continued. Risks to the surety industry include quality issues on projects, labor shortages, lack of growth in public construction, and inflation.
This white paper, authored by Jeffrey Katz of The Vertex Companies, Inc., (VERTEX), outlines how to determine if construction completion costs are reasonable. If an owner terminates its contractor for cause, or if a general contractor or construction manager terminates one of its subcontractors for cause, it owes the terminated party as well as its surety, if applicable, a duty to incur only the reasonable and necessary costs to complete the work. In other words, the non-default party has a duty to mitigate the costs of completion.
VERTEX's Dr. Amin Terouhid co-authors an article titled "Construction of Manufactured Homes - Understanding the Hazards and Risks" This article presents research focused on worker safety in the manufacture, transportation, and installation of manufactured homes to obtain a better understanding of safety risks and work-related hazards involved.
VERTEX's Kevin Maxwell, PE, SFE, publishes a detailed analysis of Thermoset and Thermoplastic Roofing Membranes, specifically how to recognize hail damage on single-ply roofing membranes.
The document summarizes the state of the construction industry in 2020. It finds that while the overall US economy experienced the most severe recession in history due to the COVID-19 pandemic, the construction industry was relatively unaffected initially. However, impacts are being felt in certain sectors and the overall effect on construction is expected in the next 1-2 years as the recession impacts construction backlogs and spending. It provides an overview of trends in the construction, broader economy and makes recommendations for how construction companies can prepare for challenges.
The document provides a summary of the state of the U.S. economy, construction industry, and surety industry in Q4 of 2018. It notes that the U.S. economy continues to grow with low unemployment, rising wages and corporate profits, and record high construction spending. However, it also flags risks such as rising household and government debt, a potential labor shortage, and market volatility. Regarding the surety industry, it reports stable loss ratios, modest M&A activity, and a decrease in the market share of the top providers.
VERTEX's CEO, Bill McConnell, PE, JD, MSCE, CDT, provides his annual outlook on the state of the Construction industry. The US economy has expanded, albeit slowly, for the past 8+ years. The construction industry, which over-corrected during the Great Recession, has rebounded with vengeance on the heels of record private construction spending. On the other hand, public construction spending was considerably less in 2017 than it was in 2006. Moving forward, all indicators suggest that private construction will slow while public construction spending will soon pick up steam. Also, all good things come to an end, and the current economic expansion will be no different—it is likely the US will enter into a mild recessionary cycle in late 2019 or 2020.
VERTEX's CEO, Bill McConnell, PE, JD, MSCE, CDT, provides his annual outlook on the state of the Construction industry. The US economy has expanded, albeit slowly, for the past 8+ years. The construction industry, which overcorrected during the Great Recession, has rebounded with vengeance on the heels of record private construction spending. On the other hand, public construction spending was considerably less in 2017 than it was in 2006. Moving forward, all indicators suggest that private construction will slow while public construction spending will soon pick up steam. Also, all good things come to an end, and the current economic expansion will be no different—it is likely the US will enter into a mild recessionary cycle in late 2019 or 2020.
This document provides an overview of the construction and surety industries in the United States in 2017. It finds that while private construction sectors are booming, public construction spending has remained flat. This trend is expected to continue in the coming years. The surety industry has remained profitable for over a decade despite flat premium growth, though consolidation in the industry has continued. Risks to the surety industry include quality issues on projects, labor shortages, lack of growth in public construction, and inflation.
This white paper, authored by Jeffrey Katz of The Vertex Companies, Inc., (VERTEX), outlines how to determine if construction completion costs are reasonable. If an owner terminates its contractor for cause, or if a general contractor or construction manager terminates one of its subcontractors for cause, it owes the terminated party as well as its surety, if applicable, a duty to incur only the reasonable and necessary costs to complete the work. In other words, the non-default party has a duty to mitigate the costs of completion.
VERTEX's Dr. Amin Terouhid co-authors an article titled "Construction of Manufactured Homes - Understanding the Hazards and Risks" This article presents research focused on worker safety in the manufacture, transportation, and installation of manufactured homes to obtain a better understanding of safety risks and work-related hazards involved.
VERTEX's Kevin Maxwell, PE, SFE, publishes a detailed analysis of Thermoset and Thermoplastic Roofing Membranes, specifically how to recognize hail damage on single-ply roofing membranes.
PAST, PRESENT, AND FUTURE ANALYSIS OF THE ARCHITECTURAL & ENGINEERING DESIGN ...The Vertex Companies, LLC
This document analyzes trends in the architectural and engineering design industry over the past 50 years. It finds that 24 of the top 100 design firms from 1965 survived, 35 were acquired, and 41 failed. Firms that grew through strategic mergers and acquisitions fared better than those that did not diversify or expand internationally. Today, the largest firms generate about one-third of their revenue from abroad. Technological advances like BIM and drones will also impact the future competitiveness of design companies.
The VERTEX Companies has undergone an integration process over the past three years to consolidate its environmental, engineering, and construction services under one brand. It is now organized into five main verticals and has experienced 30% revenue growth each of the past two years. VERTEX expects continued double-digit growth in 2014 as the economy recovers and its focus on integrated services and private sector clients provides opportunities in real estate development, insurance, and upstream oil and gas projects. The company will pursue further growth through acquisitions and an employee stock ownership program to attract top talent.
The document summarizes the state of the US construction and surety industries in 2007. It finds that while construction growth slowed in 2006 due to a correction in the residential sector, the industry still surpassed $1 trillion for the third consecutive year. The residential slowdown has substantially impacted the US economy. It also notes that nonresidential sectors like public construction are growing. Material inflation has cooled except for oil, and construction profits and surety industry profits were healthy in 2006 but are expected to trend downward after 2008.
The document discusses concerns that carbon nanotubes (CNTs) may pose health risks similar to asbestos due to some physical similarities between the two materials. CNTs are an emerging nanotechnology that are very small carbon structures with useful mechanical properties. However, their shape and size resemble asbestos fibers in some cases. Asbestos is known to cause lung disease and cancer when inhaled. Given the legacy of asbestos-related litigation, the document argues it is prudent to consider potential health implications of CNT use in research and consumer products.
This document provides an overview of the state of the U.S. economy, construction industry, and surety industry. It finds that the current recession began in December 2007 and is the longest since 1933. While the unemployment rate has risen significantly, economic stimulus spending and interest rate cuts are expected to help end the recession by summer 2009. The construction industry experienced strong growth until 2007 but has since declined due to limited financing availability. Contractor profit margins are decreasing and losses are expected to continue through 2011. The surety industry is profitable now but losses will likely rise in coming years as contractor financial stress increases.
Bill McConnell provides his white paper on the state of the construction industry. 2010 was a recovery year from the Great Recession. Learn valuable insights about the construction industry during this year of recovery.
This document provides an overview of the 2016 state of the US economy. Key points include:
1) Real GDP growth has stalled at around 2% despite low unemployment, due to factors like declining commodity prices.
2) Unemployment remains at historically low levels around 5% but inflation remains below 2% due to international factors.
3) The Federal Reserve raised interest rates modestly in 2015 but further increases are expected to be gradual given mixed economic indicators.
This document provides an executive summary and analysis of the anticipated performance of the U.S. construction industry in 2015. It finds that while the construction industry rebounded in 2014, growth outpaced GDP and private sector growth continues, public sector construction is also showing signs of improvement. The U.S. economy is growing steadily but corporate profits are high while wages are still low. Inflation remains below targets due to falling energy prices, and the Federal Reserve is expected to raise interest rates in 2015 to address inflation, which will impact some industries. Overall, 2015 is forecast to be a strong growth year for construction.
This document summarizes key points from a presentation on the state of the construction and surety industries in 2016. It notes that private construction is booming while public construction remains flat. The construction industry is growing faster than the overall economy. It also discusses trends in the number of construction firms and employees. The surety industry continues to be profitable despite a lack of premium growth. Risks to surety providers include quality issues, labor shortages, and lack of growth in public construction. The document examines corporate lifecycles in construction and how acquisitions have impacted top firms from 1964. It provides insights on successes and failures of acquisitions.
The document provides an overview of the state of the U.S. economy, construction industry, and surety industry in 3 parts. It notes that the U.S. economy is overdue for a minor correction, private construction sectors continue to boom while public remains flat, and the surety industry has experienced a decade of low loss ratios and flat premium growth despite soft market conditions.
PAST, PRESENT, AND FUTURE ANALYSIS OF THE ARCHITECTURAL & ENGINEERING DESIGN ...The Vertex Companies, LLC
This document analyzes trends in the architectural and engineering design industry over the past 50 years. It finds that 24 of the top 100 design firms from 1965 survived, 35 were acquired, and 41 failed. Firms that grew through strategic mergers and acquisitions fared better than those that did not diversify or expand internationally. Today, the largest firms generate about one-third of their revenue from abroad. Technological advances like BIM and drones will also impact the future competitiveness of design companies.
The VERTEX Companies has undergone an integration process over the past three years to consolidate its environmental, engineering, and construction services under one brand. It is now organized into five main verticals and has experienced 30% revenue growth each of the past two years. VERTEX expects continued double-digit growth in 2014 as the economy recovers and its focus on integrated services and private sector clients provides opportunities in real estate development, insurance, and upstream oil and gas projects. The company will pursue further growth through acquisitions and an employee stock ownership program to attract top talent.
The document summarizes the state of the US construction and surety industries in 2007. It finds that while construction growth slowed in 2006 due to a correction in the residential sector, the industry still surpassed $1 trillion for the third consecutive year. The residential slowdown has substantially impacted the US economy. It also notes that nonresidential sectors like public construction are growing. Material inflation has cooled except for oil, and construction profits and surety industry profits were healthy in 2006 but are expected to trend downward after 2008.
The document discusses concerns that carbon nanotubes (CNTs) may pose health risks similar to asbestos due to some physical similarities between the two materials. CNTs are an emerging nanotechnology that are very small carbon structures with useful mechanical properties. However, their shape and size resemble asbestos fibers in some cases. Asbestos is known to cause lung disease and cancer when inhaled. Given the legacy of asbestos-related litigation, the document argues it is prudent to consider potential health implications of CNT use in research and consumer products.
This document provides an overview of the state of the U.S. economy, construction industry, and surety industry. It finds that the current recession began in December 2007 and is the longest since 1933. While the unemployment rate has risen significantly, economic stimulus spending and interest rate cuts are expected to help end the recession by summer 2009. The construction industry experienced strong growth until 2007 but has since declined due to limited financing availability. Contractor profit margins are decreasing and losses are expected to continue through 2011. The surety industry is profitable now but losses will likely rise in coming years as contractor financial stress increases.
Bill McConnell provides his white paper on the state of the construction industry. 2010 was a recovery year from the Great Recession. Learn valuable insights about the construction industry during this year of recovery.
This document provides an overview of the 2016 state of the US economy. Key points include:
1) Real GDP growth has stalled at around 2% despite low unemployment, due to factors like declining commodity prices.
2) Unemployment remains at historically low levels around 5% but inflation remains below 2% due to international factors.
3) The Federal Reserve raised interest rates modestly in 2015 but further increases are expected to be gradual given mixed economic indicators.
This document provides an executive summary and analysis of the anticipated performance of the U.S. construction industry in 2015. It finds that while the construction industry rebounded in 2014, growth outpaced GDP and private sector growth continues, public sector construction is also showing signs of improvement. The U.S. economy is growing steadily but corporate profits are high while wages are still low. Inflation remains below targets due to falling energy prices, and the Federal Reserve is expected to raise interest rates in 2015 to address inflation, which will impact some industries. Overall, 2015 is forecast to be a strong growth year for construction.
This document summarizes key points from a presentation on the state of the construction and surety industries in 2016. It notes that private construction is booming while public construction remains flat. The construction industry is growing faster than the overall economy. It also discusses trends in the number of construction firms and employees. The surety industry continues to be profitable despite a lack of premium growth. Risks to surety providers include quality issues, labor shortages, and lack of growth in public construction. The document examines corporate lifecycles in construction and how acquisitions have impacted top firms from 1964. It provides insights on successes and failures of acquisitions.
The document provides an overview of the state of the U.S. economy, construction industry, and surety industry in 3 parts. It notes that the U.S. economy is overdue for a minor correction, private construction sectors continue to boom while public remains flat, and the surety industry has experienced a decade of low loss ratios and flat premium growth despite soft market conditions.