The construction industry was challenged in 2023, no doubt about it. We haven’t seen interest rates like these since the mid 1990’s. This has made not only financing goods, but simply being approved for financing a challenge for some people or businesses. Raw materials costs rose exponentially last year, particularly near the end of summer. This caused final prices for finished goods (and subsequently, services) to follow suit. These increased interest rates, coupled with raw materials costs rising, gave some small businesses no choice but to adjust their project and product pricing accordingly. Wages for construction workers, who businesses are having a harder and harder time finding, are also increasing steadily. In short, things were tough for many in 2023.

Whether the Bank of Canada likes it or not, infrastructure in Canada is ever growing, and ever changing. The very home you are living in has either been recently built, recently renovated in some way, or you are taking a look around after reading those last 17 words and your wheels have started turning. Your next thought however, is likely the costs involved in all of your big plans. Everything in the first paragraph means the cost to renovate that 40 year old kitchen you are looking at right now will be just too high. 

Right?

Not quite.

There is good news. Have you ever heard the quote, If winter comes, can Spring be far behind? Percy Bysshe Shelley couldn’t be more right. As winter comes to a (hopefully abrupt) end, our construction industry is slated to rebound in the Spring of 2024. As annoying as these rising interest rates have been, they did ease demand long enough to take much needed pressure off supply chains. This means there will soon be enough product to go around, thus prices will start to stabilize. Moreover, we have seen interest rates held by the Bank of Canada 4 times in a row. 

So what does this mean for You? This truly depends on who this blog has reached. 

If you are, in fact, looking at your kitchen right now dreaming of updates and colour palates, this is your cue to reach out to your local contractor sooner rather than later to get their opinion on things, because he’s about to get busy. 

If you are feeling the pinch, as many have in these difficult financial times, this may be your call to action. There is a need. No matter what happens in the world, construction is an everlasting, ever-changing, and ever growing need. With innumerable sectors and niches, you are a simple phone call away from those first steps to joining an industry that is invaluable, and slated for incredible success in the year to come. 

For assistance in funding your construction venture, please reach out to Darren Turner, our construction and transportation Leasing Specialist at 888-470-8650, email darren@leasedirect.ca