Despite reports earlier this year that showed significant spending growth in the construction industry, recent reports reveal that construction spending has actually taken a downward trajectory starting in March, at least in the multi-housing complex sector. Multi Housing News Online recently reported that the Census Bureau found U.S. construction spending dropped 0.6% in March compared to February. The report stresses that these figures can be misleading, as the commercial construction sector still continues to see growth. However, the New Jersey Construction Industry must remain aware of the challenges faced by those in their industry to make the appropriate decisions for their own business.
So what’s causing this drop in construction spending for the multi-housing sector? According to a report published by US News, the weakness in spending has largely been caused by a big drop in business investment spending on structures, which dropped at an annual rate of 23.1%. This can be attributed to cutbacks in drilling and exploration by energy companies in response to the sharp declines in energy prices. The good news, however, is that economists are confident that the industry will see a boost in spending growth soon, in the April-June quarter. Warmer weather is expected to boost not only consumer spending but construction as well.
At Tri-State Insurance Agency, we provide a complete suite of New Jersey Business Insurance products and services to contractors in the New York, New Jersey and Pennsylvania tri-state area. Our Construction programs are designed to help mitigate the various risk exposures contractors face with property, liability and workers compensation, and other key coverage offerings. We can help protect tri-state area contractors from the unique exposures that are inherent in the construction industry. Give our NJ construction insurance specialists a call today at (888) 990-0526 for more information.