An Economic Downturn May Be the Time To Charge Ahead
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 projects that they would never have looked at in the past. Bid prices are plummeting, margins are evaporating, and the future looks grim for some firms.