Construction activity down 44% nationwide:

your ministry can save by building now!

Yes, we’ve all noticed the continued slowing of residential and commercial construction throughout the country. Well, it’s official… a Forbes.com article reported by Oxford Analytica (7/14/09) said that “in the first quarter, real non-residential construction activity is estimated to have declined at a record annualized 44% rate.”

“I haven’t seen costs this low in my 30-years as an architect and builder,” says Dan Cook, BGW founder and architect. That means these next 18 months are critical times for your Christian ministry building project. He is quick to explain why you should move forward with construction as soon as possible to capture the savings available.

1. Subcontractors and suppliers are not taking the average markup on product and labor. In order to be competitive and remain in the market, many in the construction industry are taking minimal to 0% up-charge on their services.

2. National suppliers are reducing their pricing for local projects. This provides them reduced costs on storing supplies during these slow times; and allows you the benefit of additional savings.

3. Subcontractors have reduced staff down to the A-Team. We are seeing long-time trade veterans on our jobsites who are better craftsmen. They work more quickly, producing quality work in less time. This reduces the overall labor costs on your projects.

Look forward to future blogs where we’ll share more detail on these cost saving factors. What are the alternatives if you miss construction this year? First, interest rates will increase as the economy recovers. Second, construction costs will increase back to pre-2008 prices or higher. At that point, building project cost savings will suffer from a reduced number of subcontractors and suppliers – and the classic supply and demand scenario will artificially inflate construction costs.

Click here to read more about the stewardship philosophy of Building God’s Way.

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