What will the election of Donald Trump in the United States do to the forecasts for construction? Is it possible to have a handle on the economic forecasts for the immediate future post-election?
How will the United Kingdom’s economy move after Brexit? Should UK construction companies be fearful or is this simply a time of change that will not overtly impact the UK business landscape?
Construction industry: Changes ahead
Change is inevitable in life. It simply cannot be avoided. Such is the case in politics as votes determine the outcomes. 2016 has been an interesting year for the UK and the U.S. as the votes have spoken.
Trump made it clear throughout the election cycle as he campaigned that he was focused on “Make America Great Again”.
Please note that there will be an honest absence of nationalism in this article as the focus will be on legitimate economics and how it relates to construction rather than political jargon.
If Trump holds true to his word, and he has not given anyone reason to doubt to this point, then he will implement plans to spend $1 trillion over 10 years on infrastructure projects within the United States. What this lends itself to is construction. Lots of it.
In addition to this spending, Trump has also promised tax credits to assist with infrastructure work, which includes roads, bridges, and airports. If you are in the construction industry and have assets in the United States, all signs point to positive gains.
With the surety of infrastructure work, it is certain that underground work will be required.
According to Brian W. Crandall, President of Icon Equipment Distributors, Inc., underground construction is the most dangerous and risky work a contractor can take on. With the utilization of hydraulic speed shoring, safety will be demonstrated as a priority with your company.
Trump has remained steadfast in his message, dating back to appearances that he had on television in the mid and late 80’s when he was not running for any elected office. So, it bears consideration that he will not back down once sworn in and takes residence at the White House.
What about the economic future in the UK with the Brexit vote? Investment levels are projected to decline slightly in 2017 due to the uncertainty of relations with the EU, while the fears of a recession should be subsided as it does not appear to be a warranted fear.
There will be growth in the UK based upon projections; however, this growth will be tempered again by the uncertainty following the Brexit vote and the political and economic relations that may be strained as a result.
Overall, for the U.S. and UK, construction business should see growth. In the UK, it will be cautious with the Brexit vote fallout and will not likely happen in 2017. In the U.S., everyone wants to see what happens as cabinet positions are filled and Trump takes the oath in January.
With a careful eye to the political landscape in your respective country of business and paralleled sound decision making, your construction business should survive the uncertain times with no difficulty, if not flourish.