Construction in the Upstate – The Comeback Kid
January 5, 2016
By Keith Smith
Everyone knows how hard the construction industry was hit by the economic downturn in 2008. Jobs were lost. Companies went bankrupt. Development stalled.
It wasn’t just here at home. The International Labour Organization calculated that at least five million construction workers worldwide lost their jobs during that year. In the United States, where employment in construction was an early casualty of the downturn, the situation was dire.
With no construction projects or money coming in, the future was bleak for many small construction firms.
During those tough years, SCHB Self Insurers Fund worked diligently to help their policyholders keep their workers’ compensation insurance coverage current. We frequently made accommodations to our policyholder’s requests for assistance so everyone could afford to protect their firms and their workers.
Eight years later, the construction industry is building and growing at record levels.
New home sales are up over 20% from last year and commercial construction is increasing. Year after year, equipment is being purchased, jobs are being added, contracts are being signed and communities are growing. Here in the Upstate, we are building again.
At the current rate, we are experiencing the highest level of construction put in place since 2008, a total that, if achieved, would represent nearly seven percent of the country’s GDP, which is double from just five years ago.
Businesses are drawn to the Upstate area by favorable tax rates, market accessibility, and the quality and availability of workforce. In fact, the Greenville Metro Area was rated among the top medium-sized cities in the nation for job growth in 2014, and was listed Number 6 on Forbes Magazine’s list of “America’s Engineering Capitals” in 2014.
The most significant driver in the Southeast that will fuel greater expansion in the marketplace is the revival in the institutional sector, especially with growing demand for new healthcare and education facilities, which alone traditionally account for a third of spending on new building construction. The industry anticipates that healthcare facilities will increase spending by over six percent in 2016 with the building of new medical parks, doctors’ offices and specialized treatment centers. The educational sectors are predicted to increase spending by over five percent building new schools, university expansions and technical learning centers.
Here in the Southern states, economic growth continues to outpace the national economy. I can attest that being a builder here in the Upstate during the economic downturn was truly trying times. We are so fortunate to be witnessing the other side of the upswing. It is a triumph.
Granted the construction industry has changed, evolved and taken a new shape. There were causalities over the past several years with firms dissolving and tradesmen leaving the industry for new careers. Yet, we are growing, building and flourishing once again. As a board member of SCHB Self Insurers Fund, I am proud to say that our organization is celebrating our 20-year anniversary providing workers’ compensation coverage for the construction industry. We are an organization created for the building industry, and help construction firms protect themselves and their workers.
As the New Year begins, there is great optimism for the construction industry and its promise to thrive in Greenville and the Southeast. Our organization will continue to protect construction workers, as they work to build our future homes, schools and medical centers. May we all continue to build and grow, and may we all enjoy a safe and prosperous New Year.
About the Author
Keith Smith is president of Keith Smith Builders, a past President of the HBA of Greenville County and the HBA of South Carolina. He has held several additional positions locally and state-wide with the HBA, and is a 2009 Inductee into the SC Homebuilders Hall of Fame.
