0405 950 053 08 7225 6514 Office Suite 4, Wellington Business Centre, 2 Portrush Rd, Payneham, SA 5070
0405 950 053 08 7225 6514 Office Suite 4, Wellington Business Centre, 2 Portrush Rd, Payneham, SA 5070

Why Is the Building Industry Booming?

There’s no denying that the global pandemic has turned economies everywhere upside down. Online retailers are writing their own checks as people stay home and shop online. Restaurants and bars are closing daily, as restrictions keep customers away. Software companies like Zoom and TeamViewer have had their best years ever.

Some industries are booming, while others are crashing. One that is certainly among the former is construction, and while that might seem weird, there are actually some very good reasons for this.

Slashed Interest Rates

One of the most important reasons for the boom in construction across the board is that governments have cut interest rates. With more people unemployed and corporate earnings volatile, they’ve had to do this to make things more affordable for everyone. But not everyone is struggling, which means individuals and companies are looking to spend, and very often, that spending is on new properties or property upgrades.

When it’s cheaper to borrow money for construction related purchases, more people will take the plunge.

The Covid Effect

When Covid hit the world, we were all driven into our homes. Many people were working from home. Others were laid off or under shelter in place orders. Whatever the reason, we were all spending a lot more time in our residences.

Which also meant that we all noticed things that weren’t ideal a lot more. Some have been driven to sell their homes and buy new ones, simply to get more space. Others have opted to extend their homes and add more space. More have decided that the renovations and refreshing they’ve bene putting off for years is way overdue.

We’ve been upgrading the inside of our homes, improving our backyard spaces, because they’ve become our primary hang out spaces, and generally been spending more than ever on construction and DIY.

The Future of the Industry

There was a time when a lot of people thought the pandemic would be around for a few months, burn itself out and disappear. No one thinks that anymore.

In the meantime, employees have turned hobbies into businesses, and companies have been extending work from home orders indefinitely. More people are still looking to upgrade or downsize, and people are even starting to look outside of major centers, to find more affordable accommodation, where they can get more bang for their buck.

That all translates into a very rosy future for construction for some time to come.

Key Trends and Predictions

Trends in the construction industry are often driven by lifestyle, and it’s no different now.

As families spend more time at home, there’s a greater demand for spaces that can be used as offices or home learning spaces. Consumers want more entertainments space in their homes, and they’re spending to upgrade outdoor spaces, since travel is off the table for the foreseeable future.

There’s no telling when the pandemic will end, and even when it does, it might take some time to go back to normal – if we ever return fully to the old normal. So, the trends to focus on home improvements and improving living spaces is likely to continue.

Even in the commercial field, as office buildings in major centers empty, with no return in sight, more are likely to be converted to living spaces, which again opens up possibilities in construction.

Opportunities and Risks

There’s never been a better time to get into the construction industry. There are more projects in the pipeline or under construction than there have been for a while, and that’s across the full spectrum.

However, while it’s a great time to be a contractor or tradesperson, there are some supply chain headaches to contend with. The pandemic has also slowed down international freight and material production at various times, and there’s still a struggle to get back up to speed. So, if you are in construction, you might find that it takes longer to get materials on site. Which is not the end of the world, but not great for cash flow – or for keeping customers happy!