Why Understanding the Economy Benefits a Construction Business
The relationship between the health of the construction industry and the economy is undeniable. In fact, many economic reports use construction activity as an indicator of economic health. How can this data help contractors get the most out of their business today?
Host Mike Merrill asks this question and more to today’s guest Dr. Anirban Basu, the founder and CEO of Sage Policy Group, a firm that provides economic consulting and analytics to business leaders across the country. Dr. Basu shares how construction has been impacted by movements in the economy over the past year and shares his predictions on what could be around the corner next. He also gives tips on how contractors can better understand the impact the economy will have on their businesses, as well as how to prepare for whatever comes next.
- Don’t miss out on government stimulus packages. Stimulus packages released by the government are built to support key infrastructures in the economy, of which the construction industry is always included. Stimulus packages release cash into the economy to be spent. Do your research on what is available to you, and where the money is allocated, to take advantage of these funds. Missing out on government sponsored projects hurts you twofold –– you lose potential new business and it gives your competition a leg up.
- Reimagine recruiting tactics to combat the labor shortage. The lack of new workers in the construction industry is because of the outdated image that the industry has projected for years. Employers need to update their recruiting tactics, promote technology on the job site, and take the time to do proper recruiting at local school career days. If the problem isn’t addressed soon, the labor gap could become a permanent problem that will lead to a slowdown in productivity, which would negatively affect the entire economy.
- Rethink drastic actions that could hurt your business in the long run. Acting too quickly and letting go of skilled staff based on the possibility of an economic recession could damage your business more than the recession itself. Once a workforce has been laid off, it is very difficult to rehire that same group of workers. Data gives business owners much needed clarity on future events, so there is never a need to make an emotional decision out of fear. Don’t be impulsive at the first sign of an economic correction, or you will miss out on the benefits that come with an economic recovery.