Over the past year, the decline of oil drilling has been significant. The major cause of concern has been the speed of the decline. In just 18 months, oil drilling has achieved the same percentage decline as in the 80s. The problem is, in the 80s this percentage decline was stretched over 1982 to 1987, a five-year period. So how are these significant declines affecting the construction business? Well, in Houston it is having a small effect.
Since 2008, construction in the Houston area has been based in more residential areas. This large, successful development of residential areas has caused a great need for more retail. Now there are retailers stepping in and filling those gaps. Kroger, for example, is promised to invest over $500 million over the next five years to continue to grow Kroger’s presence in Greater Houston. However, it is expected that once this demand for retail is met, the construction business will begin to decline. There may already be evidence to support this theory.
Construction companies and developers have started just under $1.5 billion worth of new buildings. This may seem large, but it is actually a 24% drop from the same time last year. Overall, new construction is down 19%, but there is still hope for a turnaround. Construction always follows the flow of the economy. If there is a downturn in the economy then there is a decline in new construction, so this recent decline is not a surprise. However, driving through downtown you would never guess there is a current decline. $1.5 billion worth of new buildings is still a lot of construction, so the business is still sustaining itself.
If you are in the construction business in Greater Houston, you will want to check out Daily Equipment Company for all your forklift needs. Daily Equipment Company is your go to for new and used forklifts for sale in Houston. Don’t let the downturn get you, you can also temporarily increase your fleet with forklift rentals in Houston. Daily Equipment Company can also take care of maintenance and parts sales for forklifts as well. So visit Daily Equipment Company today.