In 2008 I predicted that the recession would be deep and long. I said so in seminars and few people believed it. In questions from the audience at those seminars, staff from sureties asked, “Where are the failures?” I said that the failures come at the end of the recovery. Now we’re starting to see more failures. No one liked the recession, but some contractors and sureties are going to hate the recovery, too. Companies will fail at a faster rate than anything we’ve seen since 2008; inflation will rear its ugly head, too. The construction market recovery is going to be a
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.