3rd Quarter Reports Indicate Construction Industry is on the Rise
The 2013 3rd Quarter Construction Quarterly Report published by Wells Fargo Equipment Finance reveals great news for the construction industry – an overall increase in construction activity and the ability and willingness to hire new employees – two major observations which strongly suggest that the construction industry, as whole, is headed in the right direction. Here are the major findings indicated by the report:
Although still very slow moving, reports indicate that, overall, construction activity has increased and will predictably continue to do so as the final quarter approaches. A trend that has been ongoing for about three years now, a rise in construction activity in regions throughout the US is promising for the industry. More specifically, private nonresidential construction and residential construction have increased, while public nonresidential construction has decreased by roughly 16%. However, the growth in residential and private nonresidential construction has been so significant that it’s compensated for the overall decline in public nonresidential construction.
One of the most astonishing findings was something that is entirely new and completely changing the way the equipment distribution industry works. Machines purchased over the Internet, a practice that is quickly trending, are reportedly not physically inspected prior to being bought over 25% of the time. And, what’s more, is that 90.7% of those buyers were satisfied or extremely satisfied with the machine they purchased!
Reports indicate that, overall, executives in the industry intend to hire more employees in the upcoming months. Compared to last year, the overall mood of needing and wanting to hire additional employees and actually being able to do so has improved drastically. 2012 suffered a more pessimistic attitude, as more executives were unwilling or unable to hire anyone and improve their workforce.
Reports indicate that equipment prices have moderately increased since last year. In fact, roughly 3 in 4 executives agree that equipment prices are higher now than they were 2012. Not only this, but it is expected that Tier IV equipment resale values will improve in the future.
As a result of the overall improvement being made in the construction industry, now is a great time to think about Extended Service Protection Plans for your equipment. The plans we offer are the only way to ensure you get the most of your equipment – ultimately protecting you from being weighed down by costly and unexpected repairs. So, if your machine does malfunction or require abrupt service, you will be back up and running in no time, without burning a hole in your wallet. Because we’re in the business too, we want your success to reflect that of the industry. Let ADI work for you – with custom Extended Service Protection Plans for your equipment, your uptime will increase, your downtime will decrease, and, together, we can keep the industry moving forward.