This article, written by A. Todd Muhleman is manager of Strategic Planning for The ChemQuest Group Inc., examines residential and non-residential spending in construction. Historically, residential housing has led the economy into and out of recessions. Unfortunately, there is little on the horizon to portend a correction in the near term; in fact, The ChemQuest Group has lowered its projected long-term volume growth rate for adhesive usage in construction from 3.2% to 0.7% through 2010. One reason that it isn’t negative is because construction outside of the residential sector has held up comparatively well.
What do you think? Will the American Recovery and Reinvestment Act of 2009 help to boost housing spending, thanks to the first-time homebuyer tax credit and other relief efforts? What drivers are affecting construction-related spending right now and how can things be improved?