Still mired in recession?
I have just returned from meetings in the Midwest and New York City and reports from our contractors and suppliers are not good. While there appears to be a general consensus in both the printed and electronic media that the general economy has “turned the corner” it is evident that new non-residential and residential construction is still mired in a deep malaise. Excess capacity appears to be the culprit in both arenas. Large inventories of single family homes approaching five million units and unoccupied commercial real estate need to be absorbed before any “new” building investment can be realized. That appears to be somewhat distant on the present economic landscape. While several developers are “testing the waters” and asking for “budget” prices on “pending projects” most are put on hold because credit is not available.
Several contractors have suggested that 2010 will be “worse” than 2009 because of nonexistent backlog. Cuts are being made at every level and more bankruptcies may take place. While long term optimism is certainly realistic the question still remains for the next 24 months “how long is long” and will I still be around to reap the benefits of the recovery? Equity Markets appear to be stimulated by scattered improved earnings reports but for the most part investors appear to be very cautious in the early weeks of the new decade.
Once again we encourage our readers to “blog” with any comments ….we would certainly be interested in learning if any sector of the country is experiencing any positive economic signs which differ from this month’s roundtable report.
John A. Viniello, NFSA President
I am looking at a multi-story hotel in Phoenix that is NOT fire sprinklered. The hotel has been “grandfathered in” and the city code does not require it to have a fire sprinkler system. We want to retrofit a modern fire sprinkler system. We have been quoted a cost of $750K - $1MIL for the cost of the install. These costs are huge. Is there anyway to help offset these costs? Either through a special loan, grants or funds? Any information would be appreciated. Thank you.
Sorry for the late reply…nothing we are aware of re financing…good luck…JAV