What’s new in Northeast Ohio construction 2010?
2010 promises to be another demanding year for contractors, particularly those in the construction industry in Northeast Ohio. It seems that Wayne and the nearby counties have been especially hard hit by this economic downturn. But there is a ray of hope. According to the Associated Builders and Contractors, the nation’s building industry, nearly brought to its knees during the downturn, should see moderate improvements in 2010 as a rise in building of single-family homes, apartment complexes, and streets and bridges offsets drops in industrial and manufacturing properties. This should also be a great year for property owners to build. It appears that there will continue to be a excess of laborers, especially in Summit, Medina and Wayne Counties, all keen to bid on the work that is out there.
So far, all the indicators say raw materials will be somewhat stable in cost, but the wage costs will be extremely low. In fact, one of the more positive aspects for contractors has been declining construction materials costs. Relative to prior years, materials prices have been steady, allowing contractors to submit bids on long-term projects with greater confidence. As a consequence, owners may be surprised how economical their jobs could be this year.
With a little luck, some of the stimulus dollars will find its way to assist construction in Summit County and Northeast Ohio and the work will begin to put bigger contractors back to work on the bigger projects. Residential and commercial building stimulus projects are estimated to total as much as $35 to $40 billion in the next two years. This could be a real boost for Ohio cities. For a $400 billion a year industry, spending at this level will assist, but likely won’t have a significant impact on the private side of the construction industry. The result may be that the large contractors will leave the smaller size work arena, thereby helping all segments of the construction industry. That would be great news for the Ohio construction community.
The financial institutions in Northeast Ohio are indicating that the banking market will continue to see challenges in 2010. Most financial institutions are expected to discontinue offering commercial real estate lines of credit, insisting that each and every project stand on its own financials. However, those finances that are made should be at relatively low interest rates. Creative banking will hold the key to success in 2010.
What impact these varied factors play out over the next year will determine the type of rebound that can be expected for the Medina construction industry. At this time, we need to remain optimistic and watchful for signs of recovery and new projects for all segments of the buidling industry.
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