Industry Analysis & Industry Trends
Unstable foundation
The fall of the housing market and its subsequent strain on the financial sector set the stage for a stagnant commercial and institutional construction, which weighed on demand for pre-construction services. With demand declining and virtually nonexistent new construction from these downstream markets, demand dropped dramatically for the Pre-Construction Services industry. Despite the influx of stimulus dollars, most contractors saw backlogs diminish to unprecedented levels, causing profit to shrink. As construction activity picks up in downstream markets, demand for pre-production services will return.... purchase to read more
Industry Report - Industry Analysis Chapter
Fewer projects, less revenue and shrinking profit plagued the Pre-Construction Services industry, which experienced sharp contraction in the past five years due to the recession. Outsourced pre-construction services were among the first to feel the pinch as developers slammed the brakes on any planned construction projects as real estate and construction demand plummeted. The economic downturn halted the industry's booming growth that it had been experiencing up to 2007, causing revenue to fall at an average annual rate of 7.2% in the five years to 2012.
Demand for pre-construction services is driven by the business sector and commercial and institutional construction trends, which were set back by the downturn. Lay... purchase to read more