Minneapolis, MN -- (ReleaseWire) -- 02/22/2021 --Non-residential construction is taking a huge hit for obvious reasons in 2021, with many businesses not starting new builds with economic uncertainty. "New starts" drive spending in that area and their forecast to drop -11% to $410 billion, a decline of $50 billion, and is forecasted to drop 400,000 jobs.
But residential construction is likely to see an additional 250,000 jobs according to industry forecaster Ed Zarenski, who focuses on construction analytics, and market research.
According to Ed's 2021 Construction Economic Forecast "Over the final 5 months of 2020, new Residential construction starts posted 4 of the 5 highest monthly totals since 2004-2006. Residential new starts finished 2020 at a 15-year high, with almost 50% of new activity for the year posting in the final 5 months, which will put a lot of that spending into 2021. Total 2020 residential starts are up 7%."
Are there enough residential construction companies and workers available to do this work? Or will this lead to a new influx of new residential construction companies, and shifting roles amongst trades people?
For those who have the skills, but want to start their own residential construction business, there are 5 basic key steps to getting started:
1. Put together a basic business plan, and seek guidance from people in your network who have business experience to get wisdom on your blind spots. 2. Name your business well and get it licensed, bonded and insured in your area. 3. Get funded, or bootstrap by overlapping with your current job. 4. Ensure you have the correct permits for the types of jobs you are going to complete, in the area you're going to complete them. 5. Sell the work! Put together a marketing plan, start marketing and leverage your network first and foremost.
Choose your niche wisely – though non-residential construction is usually harder to get into in the first place, it appears that residential construction will continue to boom as many people seek their own homes, and are spending more time there during COVID-19 and in the near future.