In December of last year, Chief Economist of the Associated Builders and Contractors, Inc. (ABC) Anirban Basu predicted that nonresidential construction spending would expand 5.2 percent in 2013. Basu suspected that office-related construction spending alone would rise 10 percent, given that professional and business services was the fastest growing major U.S. industry in 2012.
So far, Basu has been correct about the increase in spending. ABC released its Q2 Construction Backlog Indicator report on August 13th of this year, which showed that commercial construction jumped 3.9 percent. In addition, the report showed that spending is up 6.6 percent when compared to the same quarter last year.
According to the report, the Midwest has seen the slowest pace of construction in the past quarter. But overall, the report provides evidence that the commercial construction industry is in full recovery mode, which is great news for your commercial real estate clients.
Your clients should not take this news for granted. Financial security depends on much more than a booming industry or good customer service. Their financial management has a lot to do with how protected they are from a lawsuit or claim, meaning that professional liability insurance should be a top priority.
PLRisk Advisors is a leading wholesale insurance brokerage covering Commercial Real Estate Agents & Brokers with professional liability insurance. Our team of seasoned professionals has the depth and breadth of knowledge to help our agency partners secure the best quality coverage for their clients. We have expertise with a number of professions, including but not limited to Commercial Real Estate Agents & Brokers, Residential Real Estate Agents, and Property Managers. Contact us today for more information at (855) 403-5982.
