The Economic Good, Bad, And Ugly

Posted by maloneybonds on March 9, 2010 under Contractors, Economy, Trends | Be the First to Comment

The Good: All recessions eventually do come to an end and it appears as though this one has run its course.

The Bad: The cycle for the Construction and Bonding industries trails the overall economy by twelve to eighteen months.

The Ugly: Unemployment on a national basis still hovers around ten per cent… Nationally, unemployment in the construction sector sadly is twenty-five per cent.  The “Kiplinger Letter” predicts that ten percent of contractors will “bite the dust” this year.  The Bonding Industry and their reinsurers are far more fearful.  Economic Darwinsim applies now more than ever.

Bonding Companies are very nervous.  Contractors, now more than ever should provide their sureties with a basic business plan along with their financial statements… Especially if the results are somewhat disappointing. Please call me if you would like some  assistance with this.