2004 Forecasts
Local Outlook: Area Industry Professionals Share Views on Upcoming Year
Northwest Construction
January 2004
Scott Thompson AIA
Principal
Weber + Thompson
Q: How do you see the Oregon and/or Washington construction market in 2004?
A: Based on our experiences in 2003 and our plans for 2004, along with what I have been reading and hearing about the slowly changing economy, I see that in the private sector, single and multifamily/mixed-use construction should remain relatively strong. However, construction for the commercial market will remain weak until the over supply of office space is absorbed.
Q: What markets look strong for 2004 (public and private)?
A: For us, single family and multifamily/mixed-use markets look as if they will remain strong into 2004. This is provided that the interest rate remains stable and the strong housing market maintains its pace.
Q: When do you see the industry coming out of the current recession? What is going to pull us out?
A: This is a hard one to predict. Idealistically, I see the recession continuing through most of 2004 with a sustainable upturn 4th quarter and into 2005. Job growth and business expansion are key. State and local governments must provide incentives to businesses to set up shop in the northwest and must cultivate a business-friendly atmosphere.
Q: Has your firm changed its habits or practices in response to the slowing economy (e.g. – hiring, purchases, etc.)?
A: We are lucky to have clients who viewed the down-turned economy as a chance to move forward on projects and get them ready for the market as soon as the economy turns around. This has kept our firm relatively busy though there has been some down time, which we have profitably used to focus on our internal structures like project management and market.
Q: During the last industry downturn, what did your firm do to survive?
A: In the early 1990s, Weber + Thompson was primarily focused in multifamily which hit us hard when interest rates soared. As a result we focused on expanding into commercial, interior design (including restaurant, corporate, and retail design), planning and residential high-rise, while retaining and strengthening our mixed-use base.
Q: Will your firm enter new market sectors in 2004? Has it already?
A: We are actively pursuing a wider geographic area including the entire west coast, Arizona and Hawaii.