Gloomy forecast for construction

The hard-hit construction industry doesn’t predict a significant rebound until 2011.

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An annual survey by the Associated General Contractors of America shows companies are expecting a sharp downhill trend in 2010, with no rebound until next year.

Adding to the bleak outlook: One in 10 respondents said they were submitting bids so low that they were in danger of losing money on their projects.

The annual forecast offers a comprehensive look at the direction construction companies expect the industry to take during the next 12 months. This year, that direction is straight downhill. Fast.

More than 80 percent of the 700 companies surveyed for this year’s forecast expect that a lack of privately funded projects will keep the industry from rebounding until 2011. With less work on the horizon, only 46 percent of surveyed companies say they’ll part with hard-earned cash to buy new equipment, down from 61 percent that made similar purchases in 2009.

Read the full story at the Daily Journal of Commerce.

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