The latest construction starts from in March are showing no change with a seasonally adjusted annual rate of $435.6 billion, said McGraw-Hill Construction, a division of The McGraw-Hill Companies. There has been improved activity in two of three sectors – nonresidential building and housing. After the first three months of 2010, total construction on an unadjusted basis was reported at $91.9 billion, which was up 2 percent since last year. After a 25 percent plunge in 2009, the move towards stability is a good sign.
What’s more, nonresidential building is also seeing pickup, however on balance the emerging recovery for total construction starts in nonresidential building is still expected to be slow this year. Therefore construction factoring might find light at the end of the tunnel, to assist builders and general contractors get through tough times. The construction industry is one of several sectors that can benefit tremendously from invoice factoring.
When used, a construction company, normally required to wait for payment before starting on the next phase of a project, can begin construction on a new project thanks to invoice factoring. With construction invoice factoring, the construction company, or sub-contractor, can be paid virtually overnight for these invoices (accounts receivable) thus speeding up cash flow so that a company can start on the next phase of a construction project.
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