The Most Recession-Proof Sectors for Construction
Sebastian Obando, Construction Dive
Whether a recession hits the economy in the near term remains under debate, but industry experts suggest now is the time for construction firms to prepare to weather a slowdown.
That means contractors should know which sectors are expected to fare the best during a downturn and to make sure they have plenty of recession-resistant work on the books.
Construction leaders “ought to look at what are the segments of work that are more likely to be reliable in an economic downturn and are their firms well positioned to take advantage of that work,” said Brian Turmail, vice president of public affairs and strategic initiatives at the Associated General Contractors of America.
Publicly funded or subsidized construction projects will remain the safest bet for contractors in a downturn, said Turmail. Public buildings like schools and healthcare facilities should also be insulated from a downturn, said Richard Branch, chief economist for Dodge Data & Analytics.