Citizens with connections to the development sector have a significant decision to make as the country prepares for the 2024 presidential election on November 5. This year’s presidential race pits current Vice President Kamala Harris ( Democrat ) against former President Donald J. Trump ( Republican ). Now, presidential poll across the country showed the two to be in a nearly neck-and-neck culture, teetering on judgements from key battleground state.
With much to consider with regard to the laws, regulations and industry-specific concerns in design, such as contracting laws, infrastructure investments, workers requirements, weather monitoring requirements, labor growth and more, essential development industry players on the contractor end are speaking up.
Associated Builders and Contractors ( ABC ) announced its support of Trump in July 2024, citing concerns about rising materials costs and exclusionary project labor agreements under the current administration. Although the most recent data from ABC shows a decrease in both its Design Backlog Indicator and Construction Confidence Index, it also indicates anticipated growth over the next six weeks. While ABC company members are also anticipating expanding sales and jobs, profits margins are increasingly being squeezed as task owners deal with high saving and building delivery costs in the context of a sluggish economy, according to ABC Chief Economist Anirban Basu. Many jobs have been postponed, resulting in new delay declines, most prominently in the South”.
With interest rates at their highest in 23 years, next month, the Federal Reserve offered a 0.5 % decline in percentage points. According to statistics from Dodge Construction Network in the construction sector, development project starts will proceed at a slow pace. The construction business may start feeling relief, according to Richard Branch, chief analyst at Dodge Construction Network,” now that the Federal Reserve has begun to decrease prices.” The successive rate will provide the impetus for projects to move forward, according to Branch, suggesting that owners and developers are showing growing confidence that both the market and financial conditions will improve. ” Starts should show stronger and more consistent growth in the first quarter of 2025,” said Branch.
Taxes and tariffs are still up for debate on both sides of the political divide, with Trump proposing corporate tax rate reductions for businesses that export goods within the United States.
Environmental regulations and initiatives, whose effects will be more visible at the sector level, are of particular importance on the manufacturer’s end. As equipment manufacturers pursue pathways toward electrification, automation and decarbonization, policies affect the outcome for both their operations and their product offerings. ” For example”, says Haworth, “if Republicans win, there is likely to be more of a push for development of fossil fuels, while a Democratic win might further promote renewable energy development”.
In the lead-up to any presidential election, uncertainty begins to echo. Regardless of the outcome, one thing is certain: the construction industry will continue to move forward.
