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4 Pieces of Advice for Nonresidential Construction in 2024

By ITR Economics on June 25, 2024

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Most nonresidential construction sectors have transitioned into Phase C, Slowing Growth, and many are feeling the weight of a potential recessionary phase. Not only that, but other challenges such as elevated interest rates are impacting large projects. Many businesses in the nonresidential space are in a tight spot through the end of 2025. To help your business put the best strategic plans in place leading up to the 2030s depression, these four pieces of advice will help you through the remainder of the decade.

Prioritize Employee Retention

It is always more cost-effective to retain employees than to hire new talent.

As labor market tightness continues, there is more competition for skilled workers. Even though most nonresidential markets are expected to contract through 2025, we will be seeing growth in this space in the years to come. Retaining your existing employees is more important than ever.

Businesses never want to be caught training new talent when in Phase B, Accelerating Growth. By keeping your best employees satisfied, your team will be ready, willing, and able to take advantage of the growth coming to the industry coming soon.

No Need to Wait for Potential Decline in Costs

In ITR Economics’ Trends Report™, we have numerous commodity price forecasts, such as steel and crude oil.

Looking at the remainder of 2024, we expect the prices of materials to remain relatively stable. Instead of waiting and hoping for prices to decline, take action and negotiate materials contracts if you need them for big projects.

Look for Ways to Implement AI

You have likely been hearing talk about how it is time to embrace the rise of AI. This is because when AI is implemented in the right way, it can improve your business’ processes and efficiencies by leaps and bounds.

The caveat, of course, is to ensure that you evaluate the ROI for your business. In addition, have a roadmap for how you are going to implement the technology before making the investments.

AI technology can lead to cost savings and better efficiency across the board; however, if utilized in the wrong way, it can end up negatively impacting your business and costing you money.

The 2030s Depression Provides Opportunities to Those Prepared

We frequently remind readers that the coming 2030s depression will not be all doom and gloom if you are prepared. In fact, those with the right business strategies in place might just find the 2030s to be an extremely profitable time, with additional opportunities to both increase their market share and build competitive advantages.

There will be opportunities no matter which market you are in, you just need to look for them.

Healthcare, for example, will be a strong industry in the 2030s, as aging demographics will increase the need for healthcare providers. This means that the construction of medical facilities could be a great area of opportunity to consider.

To make it easy to follow your industry and markets closely over the next few years, sign up for a free trial of the Trends Report™, which offers more than 40 market forecasts that look three years ahead with ITR Economics’ unparalleled forecast accuracy!

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