Construction Industry in Best Shape Since Meltdown

Anderson says despite cyclical highs and lows, the pace of building construction must meet the demand for shelter.

PHOENIX—Phoenix-based Rider Levett Bucknall, international property and construction consultants and an industry leader in cost research, reports that the construction industry “is in the best shape that it has been since the depths of the financial crisis,” following continued upward trends in construction activity and steady growth in the last half of 2015. The firm notes, according to the Bureau of Labor Statistics, construction unemployment is down to 6.2%—nearly at economic full employment—and that its research shows that activity is up in virtually all areas with the possible exception of the oil centers. The firm reported its findings in its newly released fourth quarter 2015 construction cost report.

In the report, Rider Levett Bucknall cited the recent decision of the Federal Reserve Bank’s open market committee to raise the target federal funds rate to a range of 0.25% to 0.50%, as an action that shows that the Federal Reserve believes the economic recovery is sustainable. Quoting Janet Yellen, chair of the board of governors of the Federal Reserve System, the report states that “…the monetary policy remains accommodative and is supportive of further economic improvement and a return to 2% inflation (CPI).”