Stay Warm in a Cold Climate
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| Ryan Whisner |
Being the middle of January in Wisconsin, I would typically speak of piles of deep snow that I am shoveling through in search of a new editorial topic. Ironically, in this case, I’m just sitting here shivering due to the below-zero temperatures with only a light dusting of snow on the ground.
Despite the current chill in the air, the construction economy should be warming up in 2025, which, by extension, would suggest an improvement for those in the construction tool and equipment distribution business.
According to Alan Beaulieu, the now retired president and principal at ITR Economics, the construction distribution and industrial markets will expand in both 2025 and 2026. By his estimation, your businesses could be seeing record sales by the end of 2026.
Of course, Beaulieu countered his own optimism with his long-time forecast of a 2030s depression, but we will get to that when it draws closer.
For now, let us run with the idea that even contractors are in step with the idea that 2025 may look a bit brighter. The 2025 Construction Hiring and Business Outlook Survey by the Associated General Contractors of America and Sage indicated that contractors are optimistic about most publicly funded projects and even are cautiously optimistic about most privatesector segments.
Of course, where there is warmth in the economic forecast there is inevitably a cold front ready to come through. For the construction and distribution industries, that blast of frigid air is a continuation of labor shortages and growing concern over material costs.
AGC’s survey showed more than 54% of respondents cited rising labor costs, insufficient supply of workers or subcontractors, worker quality, and material costs as their top concerns going into 2025. The association indicates that the concerns mostly arise from number of proposed policies from the new administration.
According to Ken Simonson, AGC chief economist, the survey results show that any supply chain issues appear to have waned in 2024. He says any concerns expressed in the survey about material prices rising likely relate to the broad range of tariffs that have been suggested.
No matter the reason, price increases will always be a topic of discussion along the entire length of the construction supply chain. While prices for things may rise, it is just as important to maintain those quality relationships with your customers because, in the end, while they may gripe about higher costs, they always remember how they were treated.
In this issue, we have an example of how developing those customer relationships is a significant key to solid growth. We traveled just up the road to Madison, Wisconsin to learn more about Verona Safety Supply. Starting out in a garage in 1997, the company is now regonized nationally as a supplier of safety and first-aid equipment for multiple industries. We hope you enjoy learning more about them.
This article originally appeared in the February/March 2025 issue of Contractor Supply magazine. Copyright, 2025 Direct Business Media.
CONTRACTOR SUPPLY MAGAZINE
The February/March 2025 issue of Contractor Supply magazine is here!
Our cover story, Building Better Relationships Safely, through its client and vendor relationships, Verona Safety Supply in Madison, Wisconsin, has been keeping a variety of industries safe since 1997.
Also in this issue are Industry Updates on Concrete Tools; Diamond Blades and Hole Saws; and Gas Engine Equipment.
This digital edition, sponsored by BECK AMERICA Inc., is fully searchable and contains live links to every advertiser and new product listing. Click away!
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