Wednesday, December 29, 2010

2010 Construction Industry

2010 was a very rough year for the construction industry as a whole. Fewer homes were sold, fewer homes were built and banks were tentative to loan sufficient funds to jumpstart commercial projects. A large number of companies that were not run efficiently went under in 2010. This presented the companies that survived an opportunity to increase their presence and gain a larger market share.

On a positive note, 2010 saw an influx of green building. Federal tax credits were granted for individuals improving their homes energy efficiency. The tax credits are valid for new construction as well as existing homes. For example, the window and door credit doesn’t expire until December 31, 2016, and the credit is good for 30% of the cost with no upper limit. Along with the focus on residential green building, the federal government has issued sizeable grants to aid commercial projects. Becoming compliant with the green building regulations appears to be the key to having bids accepted from here on out. It is crucial to invest in R&D and innovate with the markets trends.

Along with the emergence of green building, more and more economical sized homes are being built as compared to the mansions that were built during the housing boom. Although these houses are smaller, they aren’t void of luxurious appliances and features. According to an article in the USA Today, “Clients used to like the status of a big home, but those days are gone." Several things factor into the decline in the size of houses, including but not limited to energy costs, cleaning costs and the fact that a home isn’t a surefire investment anymore.

The year 2011 will be full of changes for better or worse. Here is an article about design trends for 2011: Builder Online design trends

An article recapping Paramount Iron, Inc's 2010 will be posted soon.

Posted By Paramount Iron at 04:03 PM   No Comments | Post a Comment
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