Need Help? (888) 742-5060

In The News:

Why Construction Isn't Following the General Economic Growth Trend

Why Construction Isn't Following the General Economic Growth Trend

January 4, 2011

In the recent MDM Webcast, The 2011 Economic Forecast, Ken Simonson, chief economist of the Associated General Contractors of America, said that while he has seen some signs of improvement in construction, overall it remains a "grim market."

So why has construction continued to drag, while the rest of the economy continues to post gains? Simonson outlined a couple of reasons:

  1. "We had such a deep and long recession that there is still a huge amount of warehouse spaces," he said. In other words, available inventory is abundant, slowing the need for new construction.
  2. The public market has been hurt by a huge downturn in state and local tax receipts. "Even as those start to improve in the last few quarters, in some parts of the country there's still so many other priorities ahead of construction," he said. Those include restoring services and ending furloughs for employees.

That said, in the webcast Simonson said he expected that construction spending would bottom out in 2010, and that we would see modest gains in construction in 2011.

© 2019 Gale Media, Inc.

Please do not reprint MDM's content on your website without MDM's express permission as it is copyrighted material. To gain permission, email us, or call 1-888-742-5060. For information on PDF or print reprints, visit MDM welcomes inbound links from your site. Please cite Modern Distribution Management.

2018-top-distributors-listThe 2018 Top Distributors List

This free PDF includes lists of top distribution companies across 14 sectors.

You will also receive MDM Update, our daily distribution e-newsletter & other distribution-focused content.

Download the Free PDF now >>

MDM-UpdateMDM Update: Daily Newsletter 

Sign up to read the best source for news & trends in wholesale distribution, MDM Update. Delivered daily to your inbox. 

Sign-up for MDM Update >>

Post a comment to this article

Partner Center