While the stock market may be the first to rally in an economic recovery, the last to improve may be the construction sector.
In South Carolina and North Carolina, the largest industry group for commercial construction is the Carolinas Associated General Contractors, well-known as the Carolina’s AGC. According to what they call their “Construction Barometer,” business building is lagging. But it has seen its worst days, says Tony Plath AGC economist out of UNC Charlotte.
(Plath spoke to SCRN’s Ashley Byrd about most recent “Construction Barometer” MP3 2:46)Carolinas AGC economist on construction activity MP3
Plath says the region’s construction industry will not look the same in the future and that to date, one third of commercial contractors are now out of business. By the time the recession wraps up, he thinks half of the private contractors in the market will be gone, as construction, not banking, was hardest hit in the Carolinas.