Our annual 2010-11 Contractor Insight Research report yielded a number of changing survival tactics and purchasing patterns for electrical contractors.
With hard survey results in hand there were over 800 conversations with 309 electrical contracting firms. It may seem like overkill that so many conversations were held. But there are several trends emerging that lead us to believe that NEW project construction will emerge during 2011. It will not be in all markets. But many will see opportunities as they are exposed to the market place.
Rental Rebounds:
As populations shift and foreclosures continue, people need places to live. Apartment vacancy rates are low in many marketplaces and the length of leases is growing. The result is that as the vacancy rate becomes smaller, large apartment developers are gearing up for projects that started to roll out in late 2010 and will continue on into 2011. As evidence of this rebound, Reuters made note that the last quarter of 2010 had rebound to a 10 year high. Even a regional newspaper such as the Dallas Morning News is projecting 5000-6000 new apartment units will be built in North Texas during 2011.
From a national perspective the latest Wall Street Journal reported that people are continuing to take out longer rental contracts even when they can afford to purchase a home. This national trend of renting vs. home ownership, actually shows no signs of letting up anytime soon.
Investor Activity:As wealthy families flee their homelands in Mexico, Columbia and elsewhere, they are investing in job funds that create jobs here in the USA. The key to this is that they come here legally with Green Cards. The pooling effect of these investments is revealing in a number of real estate developments such as apartments.
Contractor Activity: Contractors are confirming that they are seeing activity in the form of increased quote frequency from major developers/general contractors. Contracts are beginning to be let.
So, what is in store for your particular market place? What are you seeing?
From a national perspective the latest Wall Street Journal reported that people are continuing to take out longer rental contracts even when they can afford to purchase a home. This national trend of renting vs. home ownership, actually shows no signs of letting up anytime soon.
Investor Activity:As wealthy families flee their homelands in Mexico, Columbia and elsewhere, they are investing in job funds that create jobs here in the USA. The key to this is that they come here legally with Green Cards. The pooling effect of these investments is revealing in a number of real estate developments such as apartments.
Contractor Activity: Contractors are confirming that they are seeing activity in the form of increased quote frequency from major developers/general contractors. Contracts are beginning to be let.
So, what is in store for your particular market place? What are you seeing?
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