
Pat Barcas photo
Bob Miodonski talked about how this year may be a turning point for local builders, who could actually see more profits after the miserable last few years of dwindling projects.
By Pat Barcas
Staff Writer
OAK BROOK — It’s been awhile since the local construction industry has had good news, but an encouraging report was delivered at the PAMCANI luncheon in Oak Brook on Feb. 3. Yes, the industry is slowly recovering, and construction is forecast to go up in 2012.
“Well, there is some good news here,” said Bob Miodonski, who spoke to the crowd. Miodonski is the group publisher of BNP Media and editor of Plumbing and Mechanical Magazine.
Miodonski reported that the construction industry is expected to grow six percent in 2012. He delivered a report detailing each individual industry and what to expect.
“This is still a people business, and relationships with customers still matter. Fortunately, we didn’t see a double dip recession last summer as we had feared, but we are not going to see the strong numbers of 2005-2008 for a long time.”
He said in order to survive, contractors will have to operate leaner and much more efficiently, implementing practices like using pre-fab materials, integrated project deliveries, more training for employees, and more wholesale material buying.
“These are changing times. This is the ‘new normal,’” he said.
Residential growth should bounce back somewhat strong in 2012, with growth of 15 percent in the Midwest region. Commercial construction should be up three percent, with open air shopping centers and renovations of big box stores leading the charge. Green buildings that are more energy efficient and tenant friendly are trends to look out for.
“These numbers sound good, but remember, this is coming off the bottom, so it’s still not great,” he said.
Surprisingly, amusement and recreation construction should be up three percent, with stadium construction buoying that category. Miodonski said the funding is tricky with the municipal stadiums because taxpayer money has to be balanced with creating jobs. Casino construction has been a hard hit category, with numbers way down in the recession.
Education building is forecast to be up by four percent, with greener schools, pre-fab and modular buildings for schools a trend to watch. Manufacturing looks to be down three percent in the region in this year.
“Manufacturing was actually one of the hardest hit categories, with a 33 percent drop in 2010,” said Miodonski. Religious construction will also be down, with fewer people donating to the church.
Still, Miodonski was optimistic that the worst may be over, and better times are on the horizon for local builders.
“There will be work out there for contractors who are progressive,” he said.
Pat Barcas’ e-mail address is pat@foxvalleylabornews.com.