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Building
and construction in the Upper Valley remains strong
as we begin the New Year. Lower interest rates and
available funding for various public and private
projects will help to ensure a continued, vigorous
pace of activity comparable to that of the past few
years. In fact, many of the driving forces that
positively and negatively affect building within the
Region remain the same. The demand for qualified
labor (as a prelude to business expansion) remains
an issue with many organizations. The availability
(and affordability) of land for commercial or
residential development within the area is a factor
in business development. And the permitting and
approval process governed by local municipalities
and state agencies continues to influence budget and
schedule considerations.
So what will make Upper Valley building and
construction activity in 2004 any different from
2003, or 2002? My suspicion is that commercial and
residential clients who have not secured qualified
assistance for their larger-scale projects early in
the year, and are not “queued-up” with a
professional construction organization may find it
necessary to defer building plans to a future year.
Without question, a shrinking labor base and an
expanding approval process have created project
delays (or stretched-out current commitments) beyond
a timeframe that could have been comfortably
predicted in 2003. Industry professionals, in some
cases, may have reached their capacity to provide
client services. Accepting new work may be both
impractical and risky. Genuine concerns, illuminated
during periods of high demand, such as safety,
quality control and product warranty, will likely
tip the scale against over-commitment. Yes, even
contractors need to stop and take a deep breath now
and then! Many are realizing that it’s just not
worth risking their company’s reputation or their
long-term business goals to bolster untenable client
expectations just for the sake of taking on one more
job in an already-demanding schedule.
What projects can Upper Valley residents expect to
see taking shape in upcoming months? There is a
broad variety of both public and private work on the
horizon. Expansion, renovation and new building
projects will impact educational institutions;
public highway garages, visitor centers, rest areas
and recreational facilities; libraries, roads,
hotels and residential housing; office and retail
space; and hospitals, to name but a few. The Upper
Valley is certainly not immune to the wider economic
pressures affecting commercial and residential
construction in other regions. But it’s a fact that
many areas are just beginning to see a pick-up in
commercial activity after 3 or more years of
‘downtime’. Continued growth within our region in
the year (and years) ahead will likely be the result
of individuals and business owners discovering the
region’s true uniqueness; those elements that help
define and promote “quality of life”. Beyond this,
the area’s highly educated workforce, and vast work
opportunities will continue to draw people to the
region.
The upcoming year promises to offer contractors,
construction managers and affiliated building
industry members both challenge and opportunity.
Many participants are recognizing the value of
incorporating relevant communication, design and
scheduling technologies into the building process
and are increasing overall productivity. Perhaps the
most astute members are finding ways to bring both
technology, and workforce training programs to their
organizations. In looking forward, one thing seems
certain: the ability of construction professionals
to effectively serve Upper Valley residential and
commercial building clients will continue to depend
on experience and industry expertise; an effective
use of all organizational assets; and, without
question, a knowledge and sensitivity to the
environment, its political resources and
constraints.
Sincerely,
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