In the past year, the economy’s ups and downs have affected every industry in some way. These fluctuations have often led to some level of uncertainty that impacted confidence on the part of both consumers and businesses, affecting everything from materials prices to the cost of groceries. Fortunately, if current forecasts hold tight, there are plenty of reasons to be optimistic.
The biggest impact will be whether the Fed continues to cut interest rates following a quarter-point cut in December. Current predictions vary in amount and frequency, but the overall consensus is that the Fed isn’t done cutting. This impacts key construction industry metrics, including borrowing, which boosts optimism and confidence with a lower cost of debt. Additionally, given rates are still historically high, there’s certainly hope for further reductions to spur more construction starts.
According to the Dodge Construction Network, residential and non-residential construction starts are expected to grow, along with non-building construction, thanks to federal funds flowing into infrastructure projects. While hotels and offices aren’t expected to surge in the coming year, healthcare and manufacturing construction continue to show little signs of slowing down after a strong performance in 2024.
Like other construction management firms, Callahan is looking ahead with optimism as we see increased activity in our business development pipeline in both our Massachusetts and New York markets. From mixed-use retail to multifamily housing, the projects expected to kick off in 2025 are exciting for numerous reasons, such as addressing severe shortfalls in housing stock to signaling more consumer confidence than we’ve seen in recent years. Some projects we’re particularly excited about include 200Q in Wakefield, MA; Leefort Terrace in Salem, MA; The Ridgeway in Yonkers, NY; Spark on Cedar in Newington, CT; and many others to be announced later in Q1.
In 2025, we look forward to building together and launching forward with numerous opportunities for shared success. Contact us today to discuss how we can get your next project out of the concept stage and into the ground.
Callahan is committed to building strong, long-lasting client relationships, and to consistently delivering solutions that exceed expectations. Contact us today about starting your next project.