On December 4, 2024, Anibran Basu, CEO of Sage Policy Group, delivered an economic forecast at the Builders Exchange of Northwest Michigan's Economic Forecast Breakfast. He highlighted significant challenges facing the construction industry, including inflation, high interest rates, and ongoing labor shortages. Despite these hurdles, the national economy saw a growth of 2.8% in Q3 2024, with projections suggesting over 3% growth for Q4, largely driven by consumer spending [c2d88456].
In Michigan, the job market has shown resilience, with the state adding 45,000 non-farm jobs since February 2020, particularly in the Grand Rapids area, which has experienced notable growth. However, Basu cautioned against rising consumer debt and unsustainable spending levels that could threaten this progress [c2d88456].
The incoming Trump administration's policies are anticipated to have an impact on the economy, particularly on the commercial office space market, which remains weak. Local contractors, while acknowledging the challenges, expressed a cautiously optimistic outlook for the construction sector moving forward [c2d88456]. This mixed bag of economic indicators reflects the complexities of the current landscape, where growth is tempered by significant risks in various sectors, including construction and real estate.