As I have been writing about for the last few months, it seems that our biggest trading partner to the south of us is starting to awake from its recession based slumber. Most of the economic indicators are pointing to signs of recovery and the US posted an increase in job creation for the first time in a couple of years. Of interest is whether these positive changes in the economy have trickled down the “street level”?
From most people that I have spoken to, the message still seems to be that it’s too early to tell. The biggest issue facing builders, developers, and residential home owners is their inability to access credit. It seems that the majority of financial institutions in the US are reluctant to lend money for residential and light commercial projects. The inability to access funds has limited the number of housing starts and further stalling a return to normal building activity.
A couple of builders that I have spoken to in California suggested that the residential construction projects they are either involved in or bidding on are financed completely by the owner which often means they are high end projects at the $400/ft or above level.
The story in the commercial side is not much different. Most projects are financed in whole or in part by State or Federal stimulus funding.
As credit begins to free up, most builders and developers are expecting a gradual return to “normal” construction activity — a far cry from the heady days of 2005 -2008 but significantly better than what they have been experiencing over the past few years.
For companies wishing to take early advantage of the recovery in the US, a good opportunity is available at the Pacific Coast Builders Conference (PCBC) in San Francisco June 9 – 11. BC Wood along with member companies:Woodtone, Norelco Cabinets, Linwood Homes, BW Creative, and Synergy Pacific, will be participating at PCBC showcasing their products to over 15,000 builders, architects, and developers from across the West Coast of the United States. We have a program that allows members to exhibit individually in a 10×10 booth, or to display samples in the BC Wood booth while showcasing images on the 4-screen digital display.
I have few spaces still left, so if you are interested please contact me at email@example.com or call me at 604 728 8786.