Guys with years of experience in the TX construction industry (especially electrical contractors)- do you foresee a sharp down turn in construction these next 2 quarters and picking back up in the 2nd qtr of 2021? If not, how do you see it playing out going forward?
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Ive noticed we always take a dip right around an election. Owners seems to reluctant to pull the trigger on funds when policies could change. We do commercial concrete.
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I believe the outcome of the election is going to determine how things pick up.
Investors and developers have tons of cash on hand, they have been securing it for the last few years, while interest rates are so low.
If the dems win, there’s no telling what the investors will do. Probably run and hide
If trump wins, then we’ll be off to the races. I suspect at breakneck pace.
I do not expect office space to be a big seller. Business owners are learning that they can still be profitable without having butts in seats. They can save a boatload on rent and go to much smaller spaces.
I’m hoping that many spaces will be repurposed as something else. Not so sure about new construction, that’s gonna be the wildcard.
This is my opinion, based on 25 years in the electrical industry
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I am on the finish out/gc side of things. We are having to turn down work. We were really slow in feb-may like most but have been full bore since then. Gonna be slammed thru December.Comment
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Has increased cost in materials had any impact on construction? Pandemic has impacted supply & demand and we’ve seen price increasesComment
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When the covid hit builders shut down all starts. 45days later they were out of inventory and still selling. Started throwing houses on every lot they had. Low interest rates is driving it, high lumber prices may slow it down some. Biden would put us in a recession.Comment
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Ask after the election.Comment
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Originally posted by Gummi Bear View Post
I agree. We are kinda in a Bermuda Triangle right now; COVID, election year and 4th quarter which is typically slower anyway.
When Trump wins it’s going to be gangbusters again.
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We've been in business since 1976. Never have had more work than this year. Things are booming in the Waco area. I've got 80 duplexes, 100 condos and 40 new homes going at the moment.
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Good for you. You’re probably the only person I’ve heard say that. Most in commercial are decently slow right now. Lots of owners dragging their feet and manufacturers hiking their prices. Of all the things that are “slammed” right now, the finish out game is prolly the last thing I’d have guessed.Originally posted by KactusKiller View PostComment
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Originally posted by Daddy D View Post
Same here. I’m with a major GC in DFW and we are searching high and low for new projects. Have had multiple get put on hold. We’ve laid off quite a few folks in the last 2-3 months
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My Son in law is a Civil engineer for a large firm, and he was telling me that projects are piling up on them right now. Big commercial projects that will be done in the next two to three years.Comment
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We have more work than we can keep up with and lined up through December it looks like. Housing market around here is absolutely nuts right now.Comment
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Depends on what type of construction you are talking about. My home building friends around the Austin area are still as busy as ever. Commercial office building is down in a big way. Companies are trying to figure out when they are going to come back to work, how many employees they will actually have when they come back to work, how many of those employees will actually come to the office and what the office space looks like post covid. All of this effects how much space they need and complicate decisions that have to be made and folks are hesitant to do anything because no one knows the answers to those questions. I am in the business of interior finish out of commercial office buildings and we will only do a third of what we could have done. What we are hearing from our commercial real estate friends is not encouraging for next year either. Everyone is either trying to get out of their lease or sub lease their existing space.
I agree with an earlier post that said civil and structural engineers are busy right now. I have heard the same thing. Developers are trying to get plans made at a discounted rate in the hopes of getting something built at a discounted rate since commercial contractors are going to be desperate for work. IMO the majority of these commercial projects are not going to happen because in most instances a bank won't give a construction loan unless the building is 40% leased and that is not going to happen in most instances due to the items I brought up earlier.
With all that said I am a little optimistic because a bunch of folks still are trying to move to Texas, there were a bunch of companies looking for space before March, a bunch of companies leases are expiring, people will be looking to downsize which more than likely mean they will have to move to a different space or upsize trying to get a good deal on more space. Right now the company I work for is not trying to take a bunch of work cheap because when it bounces back it will bounce back big time and we don't want to be tied up with a bunch of work that we took at half the fee we normally would.
Apologies for the long winded post but 2020 has been slow and I have had a bunch of time to think about it.Comment
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