J.A. Wagner recently completed this 200,000-square-foot trailer manufacturing facility for Universal Trailer, located in Bristol, Indiana. Universal Trailer manufactures Featherlite, Haulmark and Wells Cargo trailers, among others.
A recent Consensus Construction Forecast from The American Institute of Architects’ (AIA) projected that construction spending has risen in 2016 and that 2017 could show an additional 6.7% gain for commercial (non-residential) construction. This survey of the nation’s leading construction forecasters also suggests that some sectors will top that—for instance, commercial/industrial (7.5%) and office space (8.8%).
Many owners have put off the decision the build over the past few years as the economy was weakened and the November election was creating a lot of uncertainty. Now that the economy has rebounded, we have seen an increase in construction starts and are listening to owners and their rationale for moving forward.
Here are six reasons to consider new construction in the coming months:
- New Construction Is Needed
Previously slumping economic conditions led to a freeze in spending on new construction in every sector (commercial/institutional/residential) and a very cautious attitude from the federal level to local municipalities. Everyone was waiting to “see what will happen.” Now is a good time to take advantage and build the projects that were put on hold, but are sorely needed: commercial buildings, schools, medical facilities, industrial facilities, and more.
- Interest Rates Are Low
The cost of financing new construction has never been more advantageous. Even a percentage point or two can have an enormous effect on the cost of construction. Today’s rates make building extremely competitive with the alternatives of tolerating unmet market needs, short-term rehabilitation projects, or low-budget solutions destined to cost more in the long run.
- Material Costs Are Stable
It’s true that the cost of construction materials rose sharply for a time. But, the recent lowered demand created conditions for a “leveling off”—and in some cases, a reduction in the cost of raw materials and equipment. This won't last long as demand for new construction increases.
- Incentives Are Plentiful
Attempts to stimulate job growth and spur the economy have led to government tax and investment incentives, further boosting return on investment. Many regions and municipalities have created incentives—from tax abatements to TIF districts—that offer substantial savings on tax rates and/or significant government assistance with infrastructure and other project costs.
It’s a good time to investigate incentives offered for everything from new construction to rehabilitation projects and energy/tech retrofits. This alone is the best reason for working with your contractor at the infancy of your project. Most knowledgeable contractors can help you wade through the process of financing and help you take advantage of all of the incentives available to you.
- A Building Is a Real Asset
One long-term strategy remains true today: land and buildings are tangible assets that retain value over time. In an era of declining interest on savings and the danger of investments squandered on the “hot new tech” of the moment, there is still something solid and substantial involved when it comes to construction. Yes, bank lending standards have stiffened, but financing for sound, market-worthy, well-planned developments can always find funding.
- Winter Is a Great Time To Begin
The construction process can be a lengthy one with site selection, financing, permitting and design considerations requiring a lot of time and planning even before the first shovel of dirt is turned. By taking advantage of the "downtime" of winter, you can get a jump on your project and have it further along by the time the spring arrives.
Have a project in mind that you have been putting off? We welcome the opportunity to learn more about your project ideas and help you move forward with them. Contact us today!
About J.A. Wagner Construction
J.A. Wagner is an award-winning design-build contractor and Butler Builder®. Our work can be found throughout the United States. Projects in Indiana, Ohio, Michigan, Kentucky, Tennessee, Florida, Utah and Texas illustrate the confidence clients have placed in us to construct their facilities. Our cost-effectiveness and ease to work with are primary reasons clients have chosen J.A. Wagner for their projects over the services of local builders in these regions.