According to a recent study, several key trends are restoring optimism within the construction industry. First, financing is back. Commercial lending conditions are improving. The Federal Reserve Board's Commercial Lending Sentiment Survey indicates that 47.8 percent more respondents reported a higher demand for commercial real estate loans in the third quarter of 2013 compared to the second quarter.
Next, versus its former distinction as a mere luxury option, LEED certification and attention to green building materials is now considered to be a core competency. Enhanced LEED certification is a competitive differentiator, particularly with projects driven by the Federal Government.
Finally, much-needed infrastructure updates and rebuilding in the wake of severe storms is driving construction recovery in many regions. Also, public-private partnerships (PPPs) are emerging as a solution when public funding is limited. Natural disaster reconstruction remains top-of-the-mind for construction executives as climate analysts predict more frequent volatile storms in the future.