The current recession in the construction industry and other sectors is worse than most, but not as bad as the Great Depression. Everyone who has been around for a while knew how this downturn would happen, based on the many booms and busts that have come before. At the heart of it is a herd mentality among investors and industry firms that causes irrational behavior. This leads to a bubble market that eventually bursts due to unrealistic expectations. Midway through the crisis, the industry now is caught up in another predictable trap as huge numbers of competitors try to snag
The market is generally healthy and steadily growing, and margins are up for large specialty contractors. Further, advances in design tools and owner demand for collaboration are giving subcontractors a seat at the table early on in projects.