Construction industry to boost demand for home components
A year ago, construction demand was down 7 percent in the U.S. and was poised to shrink again as the economy healed from the Great Recession, according to the National Association of Home Builders.
Now, demand is soaring as builders seek to fill a need that is not fully met by the industry, and demand for new home building equipment is up in line with population growth.
The surge in demand, along with a surge in new home construction in recent years, has propelled homebuilding to an all-time high in the United States, and a strong rebound is underway.
The demand for building and remodeling equipment has been surging, fueled by a surge of demand from Millennials who want to build and remodel their homes in the suburbs, while the demand for construction services and engineering services has been rising.
In 2017, the U,S.
saw the fastest growth in home construction since 2008, and the most in nearly two decades.
That trend is expected to continue in 2018, with an expected 5 percent growth in new construction and 6 percent growth for new remodeling, according the Association of Builders and Contractors.
The U.s. is now building more than 200,000 new homes a month, according a Reuters report.
The supply of new home and remodelling components has been strong, and builders are building them at record rates, said Bruce Hargreaves, chief executive officer of Hargreson Construction, which has about 500 workers in the Houston area.
The company is building more and more houses with modern finishes and features.
Hargreets said he expects to see more construction jobs increase in the coming months as demand picks up.
He said he expected to see about 15 percent growth next year for remodeling and construction jobs.
In the next few months, the industry is expected get even stronger.
The National Association for Home Builder said its forecasts for new residential construction in 2019 show a 10 percent increase in new projects and 10 percent rise in new homes.
Hospitals are building more, too, with a projected 20 percent increase over the next three years, the association said.
Hargroes said he is not concerned about the shortage of hospitals, which are spending billions of dollars to expand inpatient and outpatient rooms and beds.
Hospital construction, which is also the fastest growing segment of the U and national construction, is set to grow nearly 8 percent this year and about 10 percent in 2019.
In 2018, there were about 4.5 million new residential homes built in the country, according an estimate by the National Assn.
The industry, which includes construction and remodishing firms, had 3.2 million active listings in the past 12 months, and there are more than 8.5 millions active listings today, according Tobermory Real Estate Group.