Lengacher regularly checks the Dodge Report, a service that provides local construction information. He said he has noticed larger companies bidding on smaller projects that they normally would not have sought, reinforcing his perspective that this is a tight market for commercial builders. Although the commercial market is tight, it is not so tight that builders cannot pay their bills, Lengacher said. We're in a recession. His commercial construction company, which covers a five-county area in the Midwest, has remained strong this year by placing a greater emphasis on public projects up for bid by local governments.
Commercial construction includes retail stores, restaurants and similar businesses.
Industrial building consists of factories and residential construction includes homes. Many builders thought lower interest rates would boost the commercial industry, but that has not been the case, Lengacher said. The Federal Reserve cut interest rates for the fourth time this year in April, by a half-percentage point. Commercial builders are not alone in having to adjust to the economic downturn. Other industries, including manufacturing, retailing and the news media, have either laid off workers or announced that they will.