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Market Forecast, 2007
Photo of The Pinnacle Promenade in Arkansas, a slowdown in housing can mean a pick up in commercial work. TOPS Data for Crossland Construction.
Everyone knows about the big drop in housing the media is reporting. The hardest hit areas, were the fastest growing markets in the country. Phoenix, Southern California, and Las Vegas among others, have had a slowdown in new home construction. This trickles down to the developers, who do not need additional inventory during the lapse in activity.
This natural process begs 2 distinct questions, how bad will it get, and how long will it last? If the current status of the major homebuilders stocks are any indication, the worst is over. Yes the large home builders stock prices tumbled, and have started to return, but the rapid price drop was just a knee jerk reaction by the market to unfavorable economic news. According to industry experts, things should stay soft until the spring, then the upturn will start in earnest.
What to do until then? We are seeing an increase in commercial site work formerly passed on by the subdivision dirt contractors. Dirt is still being moved, just at a different location. Underground contractors are going to be the newest members of the GPS family. Excavator systems have proven themselves to be reliable, and we are building site models as well as a trench network for use with GPS.
Newletter Central Articles in Archive December 2006 · Market Forecast, 2007
December 2006 · 3 Easy Pieces - Doing Business with TOPs
April 2006 · Design Engineers Screw Up Everything
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