Project abandonments drop amid contractor optimismwww.constructiondive.com/news/project-abandonments-contractor-optimism/728879/
484 sats \ 2 comments \ @BlokchainB 28 Oct Construction_and_Engineering
Abandonments plummeted 49.8% in September, according to ConstructConnect’s Project Stress Index, a measure of construction projects that have been paused, abandoned or have a delayed bid date.
But despite the good news around fewer abandonments, the amount of work put on hold jumped 9.8% last month. That drove the overall 16.7% increase in the Project Stress Index over the past 30 days, according to the report.
Rising optimism around lower interest rates may have been keeping some developers in recent months from stalling or abandoning projects, he said. The Federal Reserve cut interest rates by 0.5 percentage points on Sept. 18.
The private sector posted significant improvements, with project abandonments falling 9.4% compared to the same period in 2023, according to ConstructConnect.
Interest rates have immediate impacts on construction projects.
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66 sats \ 1 reply \ @k00b 28 Oct
Has there been a period in history where construction projects weren't financed by bank loans? I suspect we'd see more of that on a bitcoin standard.
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154 sats \ 0 replies \ @BlokchainB OP 28 Oct
Good question. For the public sector banks are rarely used it’s mostly tax payer dollars that pay for such projects but in the private sector I assume it depends on how well capitalized the companies are plus construction firms operate on very thin margins so they probably need access to highly liquid capital to pay employees and pay for equipment then pay the bank back once they get their payment from the project owner. Why so many firms abandon projects because they aren’t liquid enough to keep paying their employees.
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