Are We Going to See a Decline in Construction Revenues?

Due to both the higher interest rates on their own and the reduced spending that will be caused by the recession, non-residential construction will decline in the next year or so. Armstead Jones, President, Imagine Think Tank gives his perspective on why property owners are going to see a decline in construction revenues over the next 12 months:

“We’re going to see a decline in construction revenues over the next 12 months because of a bunch of key indicators. Number one, interest rates, and number two, inflation. Those things are going to cause permits to slow down, so when construction companies go to do work, on job sites, they’ll pull permits in order to start certain phases of work.

Owners, developers, property owners, and landowners are slowing down because interest rates have wrecked their performers and their models, and inflation has jacked up their costs. So with all of these things happening, they’re slowing down on the completion of projects, which slows down the construction industry, which then slows down subs in that construction industry as well.”

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