2020 Industry Review

This has been an immensely volatile and harrowing year. The world health crisis and government response has left many unable to participate in the work force and even more unemployed. An impending liquidity crisis and collapse in the stock market led the Federal Reserve to drop its borrowing rate to 0 and initiate quantitative easing measures. Stimulus money was issued and retail sales increased as consumers spent more on home meals, home improvements, and similar retail purchases. Producers have managed to maintain sales however inventories have been reduced. Sentiment has been heavily reliant on positive news regarding a coming vaccine and the hope for additional stimulus.

The construction industry has been particularly volatile this year. Residential housing, specifically single-family housing, has been leading the pack as consumers demand newer, larger homes and improvements made to their existing homes. Larger residential developers however are wrapping up their projects quickly and seeking less permits for new developments. Nonresidential construction has taken the largest beating with fewer new projects being committed and less money put in place than this time last year. Overall cost of materials remains high as supply chains are placed under stress. Retaining skilled labor has also proven to be difficult as older, skilled tradesmen choose to stay out the labor force