{"id":21317,"date":"2024-03-14T14:46:52","date_gmt":"2024-03-14T18:46:52","guid":{"rendered":"https:\/\/www.foundationsoft.com\/?p=21317"},"modified":"2024-12-09T09:49:16","modified_gmt":"2024-12-09T14:49:16","slug":"navigating-election-year-uncertainty","status":"publish","type":"post","link":"https:\/\/www.foundationsoft.com\/learn\/navigating-election-year-uncertainty\/","title":{"rendered":"Navigating Election-Year Uncertainty"},"content":{"rendered":"

There\u2019s always uncertainty at the beginning of a new year and 2024 is even more unpredictable as we approach a presidential election. The economic environment we\u2019ve traversed and adjusted to over the last term might just be shaken up.<\/p>\n

Contractors, whose jobs can include federally funded opportunities, are directly impacted by the political landscape. Decisions made at the federal level influence the types of projects available. For example, the Biden administration put over $220 billion in funding into the Bipartisan Infrastructure Law to fuel infrastructure projects.[1]<\/a> Although not without controversy, it did create additional jobs in various construction sectors.<\/p>\n\"UG<\/a>\n

With November approaching, contractors are expressing their thoughts of how the upcoming election will impact the construction industry. My interest right now, eight months out from the election, is what concerns they have going into the election and what issues they\u2019re heavily monitoring.<\/p>\n

<\/span>Take A Contractor\u2019s Word For It<\/strong><\/span><\/h2>\n

Construction Business Owner Magazine<\/em> surveyed a limited number of contractors in December 2023 to ask their predictions for the construction market in 2024. Unsurprisingly, many of those interviewed referenced the upcoming election in their predictions.[2]<\/a><\/p>\n

Let\u2019s survey what they had to say:<\/p>\n

\u201cThe construction market in 2024 should be better due to the fact we have a presidential election, and generally the market is a little better during election years.\u201d<\/p>\n

\u2014Allen Sanders, General Manager, SAS Construction Inc.[3]<\/a><\/p>\n

\u201cOverall national dollar volume remains the same as 2023 with a possible 5% increase. In the second half of the year, private commercial work picks up. Labor shortages grow. Schedules get longer.\u201d<\/p>\n

\u2014Bob Richardson, Executive Director, Durotech Construction[4]<\/a><\/p>\n

\u201cThe economy will drop into recession in early 2024. The two biggest issues that will affect the construction industry are labor issues and supply chain issues.\u201d<\/p>\n

\u2014Nathan Medcalf, Content Creator & Marketer, Nathan Medcalf Freelance[5]<\/a><\/p>\n

\u201cAs the interest rates continue to remain high, the money flow remains low. These folks who found it easy to get work will struggle and return to established employers for a consistent income.\u201d<\/p>\n

\u2014Eric Glasow, President, GCI Services Inc.[6]<\/a><\/p>\n

<\/span>Deciphering The Predictions<\/strong><\/span><\/h2>\n

Between anticipations of high interest rates, labor shortages and recessions, many contractors are predicting some fluctuating conditions for 2024. But we know predictions are just that \u2014 predictions<\/em>.<\/p>\n

However, if we zoom in on these conversations, they provide a nuanced understanding of what the dominant issues are for contractors.<\/p>\n

One recurring theme is the relationship between the election and market health. Historically, election years have led to heightened economic activity driven, in part, by government spending and infrastructure initiatives aimed at increasing candidate favor.[7]<\/a><\/p>\n

Contractors like Sanders, whose prediction was the first presented above, highlight this historical trend, as he expressed optimism about a potential uptick in market conditions as political campaigns gather momentum. We will have to watch and see if this trend continues.<\/p>\n

Contractors like Medcalf are focusing on broader uncertainties, like a potential recession, higher interest rates and limited consumer spending. Medcalf\u2019s predictions remind us to proceed into 2024 with caution. \u00a0It will be important to observe how candidates intend to amend these widespread economic concerns.<\/p>\n

Labor shortages are also at the forefront of contractors\u2019 minds. As Richardson mentioned, there\u2019s been a decline in available skilled workers. This ongoing challenge of labor constraints and material shortages, which economists claim may continue to strain project timelines and resource allocation,[8]<\/a> will need to be addressed.<\/p>\n

Overall, approaching economic predictions must come with an understanding of all the elements at play: from historical trends and current market status to micro-elements like inflation and shortages. No one thing \u2014 like an election \u2014 can drive the state of the construction industry. Rather, many elements come together to influence construction market dynamics. While electoral cycles and economic indicators can<\/em> provide valuable context, the devil lies in the details and surrounding circumstances.<\/p>\n

<\/span>How Should Contractors Prepare For the Year?<\/strong><\/span><\/h2>\n

Given the varied range of forecasts, contractors should adopt a proactive approach to navigate the uncertainties of the upcoming year. To best plan for the future, consider the following actions:<\/p>\n