A Reed Construction Data article released today says that non-residential construction increased in January 1020 by 20% compared to January 2009. This is encouraging news indeed. However, further into the article it notes the continuing problems that commercial developers face in obtaining funding. Institutional buildings also face tough times as construction funding becomes mired in the financial problems of many states and cities.
Working in favor of commercial builders is the veritable mountain of cash that many banks are sitting on right now. Banks are loath to take risks on commercial projects when the economy is still weak, but they are facing the prospect of very low returns if they continue to hoard their cash. This pressure will eventually become serious enough to get banks to spring loose with some of that money. The timing of all of this is very much in question, but the fundamentals are undeniable. Banks cannot continue to survive on the miniscule returns available on super-safe investments.
Locally (Southern California) we are seeing a significant decline in the amount of work there is to bid. There is some activity in the commercial remodel segment and hospital work continues at a reasonable pace. But new public works projects seem to be declining, and larger private commercial projects are few and far between.
David Prizio has over 35 years experience in the fields of general contracting, concrete subcontracting, and civil engineering. He functioned in the capacity of carpenter at Prizio & Prizio while attending college. After graduating from Cal Poly, Pomona in 1975, David Prizio began working as a project manager at the firm. He was responsible for design coordination, cost estimation, construction coordination and administration of commercial general contracting projects. He consulted with clients regarding design, marketing, and financing of building and construction projects.