After months of rising steel prices, commercial construction is beginning to slow in many parts of the country. An article on mLive.com takes a look at the current slowdown, and makes some predictions for 2009.
While many are hoping the economy and steel will level soon, and the housing industry will rebound next year, the recovery could take longer than expected, predicts developers quoted in the article. Cliff Brewis, senior director for McGraw Hill Cos. in California, says, commercial construction will be “cautious in 2008 and 2009. You will not see a lot of retail, office, hotel until the economy shows more vigor. Historically, these sectors have reacted quickly to downturns. Developers are very sensitive to supply since we overbuilt in the 1980s. And with state budgets tightening and federal budgets tightening ... public construction will slow down in 2009.”
To read what self-storage developers have to say about steel and the construction of new facilities, check out Steel Prices Soar on the ISS website.
Unless you’re planning to develop a new facility in the next year, the slowdown in self-storage construction will have less of an affect on you. What does affect all owners and managers is today’s wilting economy.
Over the years, self-storage has often been touted as being recession-proof. While there are people on both sides of that debate, there is no doubt in my mind that the average homeowner is likely tightening the family finances right now.
What does that mean for you? You have to be at the top of your game. That includes everything from the parking lot to your employees. For tips on improving your site, check out the July issue, our annual facility maintenance and remodeling issue, arriving in your mailbox soon. The articles will also appear on the ISS website next month.