Last year was somewhat disappointing as builders watched for signs of economic recovery here in the greater Jacksonville area. There were signs and reports of increased productivity, but it was not consistent nor as strong as we would have liked.
Now into the second quarter of 2013, I’m more than just optimistic. I witnessed firsthand the work of our NEFBA team in Tallahassee and believe good results will come out of their efforts on our behalf.
I’m certain there already has been a turning of the corner. Housing starts and home values are on the rise. And, that’s more than just anecdotal evidence. I just read the expected growth rate for residential and non-residential construction in our area is 3.4 percent.* Certainly that’s not the meteoric increases we saw in 2006 and 2007, but keep in mind the market was flat in 2012.
And the outlook for residential construction is even better. Spurred in part by construction projects at Mayport and the Naval Air Station, new apartments around the St. Johns Town Center, the University of North Florida expansion – all of which will have a positive impact on employment figures, new housing starts are expected to increase by 10 percent. If you recall that 2011 and 2012 showed losses, an increase of any size is great news and a reason to be excited.
I’ve been inspired by the stories of so many of our members who weathered the storm and have gained new strength. Their stories are case studies in survival and recovery. The key for some was diversification. For others, it was getting back to basics with a leaner budget. Whatever the approach, these members have been sharing their stories and you’ve read some in our member profiles. We’re proud of them and learn from them.
As I’m sure they would tell all of us, we need to temper our expectations with the realization that the political climate in Tallahassee, Washington and abroad can have a dramatic effect on growth. Healthcare and tax reforms loom large in the considerations of small businesses.
It’s a cautionary tale with a silver lining. And your association is here to serve you and help you make that silver lining a reality.
(*Online report by STAFDA, a 2,500-member educational association comprised of distributors, manufacturers, rep agents, and affiliates (trade press) serving the light construction/industrial market from across the U.S., Canada and internationally. http://www.stafda.org/).