2023 Recession Readiness Guide for AEC Firms
Hello, readers, and welcome to the 2nd edition of The Blueprint - your monthly digest for great news, data, trends, and ideas coming from the built environment.
Every month I send out a construction industry market update worth knowing. What is happening in construction, and why? How is the market and technology changing? What does this mean for hiring managers and for those navigating their careers? I cover patterns and trends heard within the built environment so you can stay up to speed on all of the opportunities out there.
This month, we look at a 2023 recession readiness guide for AEC firms. Read on!
As always, please share what you are reading and listening to, and what you think may be missing from this month’s installment. I read every comment, and the top recommendations just might appear in next month’s edition.
7 Keys to Proactively Preparing for the Economic Downturn That Many Experts Are Predicting
Unanet has recently launched a highly relevant e-book, "Recession Readiness Guide for AEC Firms."
This comprehensive guide outlines seven crucial steps AEC firms should take to brace themselves for the next economic downturn.
In effort to support the AEC community, I've read, summarized, and condensed the most vital information from the guide, making it easily accessible and insightful for you.
2023 Outlook
After a decade of robust growth, AEC firm's outlook for 2023 looks mixed. Rising interest rates, inflation, geopolitical turmoil, continued supply chain disruptions, labor shortages, and other uncertainties are signaling a possibility of recession.
In late 2022, economic experts claim "the worst is yet to come and, for many people, 2023 will feel like a recession."
On the positive side, project pipelines are full and an abundance of new work likely will be in play as a result of the pent-up demand from the lingering pandemic.
Step 1: Prioritize Recession-Resistant Markets
During a recession, AEC firms tend to get more new business from industries tied to "must-have" products and services, while industries tied to "nice-to-have" products and services are less promising. So evaluate your firm's book of business and build a diverse client and project portfolio.
A partnership, strategic alliance, or joint venture with a firm that already has relevant experience could help you win business.
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