The construction industry is sometimes able to weather the economic turmoil because the projects take several years to plan, design and build. The issue for us is that when the project pipeline dries up, it takes some time for the activity to regain its former velocity. The question is how long before we have a full recovery of two quarters of job growth? The latest rise in unemployment is an indicator.
Richard Fisher, the president and CEO of the Dallas Branch of the Federal Reserve, the banker’s bank, spoke about the current economic conditions and possible solutions at a luncheon last week hosted by the Greater Houston Partnership and BBVA Compass.
The national press was there when he said that the recovery would take longer than originally expected and that the central bank would monitor the situation very closely. He explained that the Bank had some additional tools that can help the recovery, but that right now they were monitoring the situation to see what the 3rd quarter numbers look like. Those economic numbers will be released in early October.
For our industry, the slow recovery means that we need to be “lean and mean” in order to weather the next two years as the economy recovers and becomes the “New Normal Economy”.
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