As the economy improves, the correlated effects of rising employment numbers and higher levels of real estate activity have created a positive atmosphere for construction, particularly commercial and industrial, heading into 2015. The Associated Builders and Contractors (ABC) announced the Construction Backlog Indicator reached a record high in the third quarter of 2014.
The CBI is an index that measures how much construction can be expected in the near future. Over the past year, the CBI has risen steadily, almost 7 percent higher than it was in 2013. The upward trajectory means 2015 is shaping up to be a boon for builders as the U.S. economy continues to grow.
"Every region of the nation experienced expanding backlog during the third quarter and so did every industry segment," said Anirban Basu, chief economist of ABC. "Recent data regarding nonresidential construction and employment has shown only sporadic gains, which is consistent with the less optimistic backlog readings registered earlier this year. But the last two quarters tell a positive story that the average nonresidential contractor in America is positioned to get busier."
Compared to the previous quarter, the largest increase in the CBI came from the Heavy Industrial sector, with backlog expanding 11.8 percent. Additionally, companies earning less than $30 million a year saw an 8.8 percent positive change in the third quarter.
HVAC industry impacted
U.S. Bureau of Labor Statistics data indicated the unemployment rate is at its lowest level in six years, standing at 5.8 percent through October, which provides ample room for construction to grow in the coming years – even beyond 2015. Coupled with rising backlog, the need for more HVAC systems will be crucial.
As large construction projects get underway, the focus on optimized, energy-efficient HVAC units will be a key component in the minds of engineers, contractors and building managers because a significant amount of savings can be obtained through the select implementation of state-of-the-art equipment.
While the collective conscious of the commercial and industrial sectors has shifted toward green materials and sustainability, many of the core building decisions come down to the operation of HVAC units. The result will likely be a strong uptick in new orders for HVAC parts, such as filters, coils and coatings.
Rahn Industries has a full lineup of spray and immersion (dip)/ Bake protective coatings to meet your needs.