Could the Construction Market Be Improving?

• Flat
• 3-5% for construction
• 6-8% for industrial
• a national chain thinking 7-9% for their total business
• a couple of large companies, in the same product category – one says 4%, the other 12%
• Herm Isenstein, of DISC fame, predict overall flat
• Electrical Wholesaling predicting, based upon its distributor survey, 5.1% nationally and from 3.9%-8.6% depending upon your region.

But here’s some interesting news to factor into your crystal ball:

• Reed Construction provides its Expansion Index on a monthly basis.  This is their 12-18 month outlook for the construction industry (yes, much more than the electrical market, but at least a barometer.)  The blue denotes “shrinking”, yellow is “expanding”, and red is “hot spots.”  In watching this over the past couple of months, the number of red and yellow spots have increased.  The next update is December 1.
• Construction employment rose in half the states and decreased in half in October and during the past year, closely matching the static national employment picture, according to the Associated General Contractors’ analysis of Labor Department data. The even split between gains and losses reflects the accelerating improvement in apartment and private nonresidential construction, offset by a declining public market and stalled single-family sector.