The U.S. commercial (non-residential) construction market outlook for the remainder of 2017 and through 2018 is expected to grow in the 4% range, according to the AIA Consensus Construction Forecast panel. This is slightly below its previous forecasts of 5-7% entering 2017. There are factors that could add tailwind to growth estimates, which include tax reform, financial deregulation, and a trillion-dollar infrastructure program over the coming decade.
The next several years should be a positive environment for construction. The volume and size of projects in the marketplace will lead to growth opportunities. Managing expanding backlogs present some unique challenges, and contractors need to be ever diligent. They must navigate their organizations through the appropriate growth opportunities without suffering the financial and human capital stress of over extension, which can lead to contractor failure. Generally, more contractors fail in good times than in bad times. Contractors primarily fail when they take on too much work, too fast, with inadequate resources, causing them to get into financial difficulty and run out of cash.
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