The construction industry is poised to grow by more than 10% next year as rental equipment rental businesses increase by 20% year-on-year, according to a new report from The New York Times.
Rental equipment rental sales, however, fell by 6.3% year over year in 2019, according the report, which noted that “rental equipment rental revenue was $1.7 billion less than forecast.”
The construction industry’s annual growth rate has remained stubbornly low in recent years.
However, it has seen its sales rise by almost 40% annually since the beginning of 2017, and the industry has made steady progress toward profitability in recent quarters.
According to the report’s data, the industry is expected to grow at an annual rate of 1.3%, or more than $9 billion, in 2019.
That’s more than double the growth rate in 2018, the last year for which the data is available.
That growth could be boosted by the completion of a number of infrastructure projects, such as the $1 billion Brooklyn Bridge replacement, according, the report.
However, construction will still face a major challenge in 2019 due to ongoing geopolitical tensions, including the war in Syria, which could hurt construction.
According to the World Bank, there are currently 6.5 million people living in the Middle East and North Africa, where there is a growing number of refugees, displaced persons and migrants.