Building Up: How Your Bigger Projects Help Bolster the Economy and the Job Market
As builders, we frequently have to grab for the low-hanging fruit. You know what I mean– those shorter, smaller jobs that fill gaps in our schedule and help keep the lights on and the doors open at our business. However, every builder and contractor knows that the real money is generally in larger projects.
Despite the potential payday, though, big jobs bring their fair share of potential headaches as well. They tend to be more competitive, require more manpower, monopolize your time and involve the most demanding clients. So understanding that, what is our incentive to pursue higher dollar new construction and renovations?
The very sensible answer to this question is:“the money.” However, every time you take on a long-term, upscale project your business also becomes an economic stimulant. Here are a few facts about how large construction jobs and renovations drive economic growth above and beyond your corporate bank account.
You become a job creator
The most direct impact of large scale buildings and renovations is that they help put more people to work. In order to execute a more complex project, you will likely have to hire additional crew members, sub-contractors, etc. A study completed by the European Union estimated that every million [dollars] invested in building projects will directly support 19 jobs in the construction sector. In the United States, the strength of our economy directly correlates to a lower unemployment rate. By taking on larger projects and the additional manpower it takes to complete them, you are actively putting people to work and injecting new sources of cash flow back into the economy.
Job security inspires consumer confidence and discretionary spending
Beyond just creating new work opportunities, larger-scale projects generally have a more extensive timeline, and accordingly offer greater job security for the people you help put to work. The longer workers know they have a guaranteed source of income, the more willing and likely they will be to save, invest and spend that income. On a macro scale, the added professional security provided by longer term projects like yours stimulates the economy by encouraging people to use a larger percentage of their income, thereby reinvesting it in a productive manner.
High end buildings increase real estate values and offer perceived value worth investing in
Upscale new construction and renovations can also help the economy beyond job and income creation. For instance, the structures you build can make a neighborhood or community a more desirable place to live and work, thereby increasing property values and adding greater economic and social diversity to these areas. This type of socioeconomic spreading helps avoid concentrated pockets of wealth, and is proven to help bolster the economies of under-serviced communities.