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3 Commercial Builder Trends That Will Be Game-Changers in 2018
As a title company that meets the needs of builders, Velocity Title pays close attention to the economy, regulations, technology, and legislation that will impact construction. As 2018 nears, here’s a look at three commercial builder trends that will be game-changers in the months to come.
1. High Construction Costs Due to Materials and Labor
The skilled labor shortage in the U.S. has been the bane of construction firms’ existence for the better part of the last seven years. That’s because the construction industry lost roughly 40% of its workforce—2.3 million jobs—between April 2006 and January 2011, and many of those jobs have not returned.
To make matters worse, the U.S. was hit by three major hurricanes in 2017, along with other devastating natural disasters—including the California wildfires.
The sudden demand for more labor comes at a time when many contractors are already facing delays of one to two months due to shortages. Now those delays could stretch into multiple months.
2. IoT and Business Intelligence Revolutionizing Job Sites
The Internet of Things (IoT), the “next frontier” of Internet technology, is making its way into the construction space. Drones are performing surveying, construction workers are wearing IoT connected tracking devices to keep them safe from job site hazards and equipment is being connected to inform owners when they need repairs.
Though at the moment only a small group of forward-thinking contractors are putting IoT technology to work, it’s worth noting it will eventually be the standard. Firms that fail to keep up with the newest technologies are bound to be left behind.
3. Rumors of a $1 Trillion Infrastructure Spending Boost
Construction firms have been cautiously optimistic that political talk of an infrastructure spending boom would come to fruition. Thus far, details of the President’s $1 trillion, 10-year infrastructure spending plan are scarce. That said, infrastructure spending is a bipartisan issue and it could become a reality in 2018.
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Velocity Title is a full-service title company offering a comprehensive line of products and services for lenders, builders, realtors, attorneys and homeowners. Keeping commercial transactions that require specialized underwriting and closing expertise moving forward is what we do best. With highly rated underwriters standing behind your investment, and our in-house attorneys here to answer any legal questions you may have—your investment is in good hands. Contact us today to learn more.