What’s Ahead In 2023? Bracing for Change in Non-Residential Construction
Like all other construction management companies locally and nationwide, Honor Construction has experienced a direct impact from pandemic-related supply chain challenges, rising inflation and costs of goods, Russian sanctions, workforce shortages, and more. Through it all, we’ve strived to remain nimble, and have focused on what we can control—and simply weathered as best we can what we can’t.
Our team takes a proactive approach to the threats to our industry that hang on the horizon, and we’ve done our best to try to navigate the changing terrain that comes with our line of work. All compass arrows point to an impending recession; though no expert has yet been able to confirm with certainty if—and when—it will hit.
What we know is that non-residential construction activity is expected to shrink in response to a recession. That means projects that are in process may stagnate, ones that are in the pipeline may be put on hold indefinitely, and others that are in the early planning stages might not get off the ground at all. If this sounds a bit “doom and gloom,” it isn’t meant to be. It’s a real snapshot of a real issue that we must be prepared for. Knowing it’s likely coming and anticipating its effects are just part of the business.
The good news is that many reports don’t show a recession coming in the immediate future. According to a recent Forbes forecast, it might not occur until late 2023 or early 2024—and it might be short lived, with a potential recovery in 2025.
In the meantime, while the non-residential construction sector continues to see growth in spending in real time, our goal is to maintain our cautious growth and continue to serve our clients and the community with honor. We’ll be forging ahead on the projects we have in process while also taking a measured approach toward those that are new and in discussion.
We know that businesses and investors have options when choosing a construction and project management firm. At Honor, we put relationships first and our values foremost. Whatever the future holds, our clients can count on us to be a trusted ally and a partner—from start to finish.