Business Issues By Mike Larson

We wonder what the economy be will like, what forces will drive it, what sectors will be hot or cool and what key challenges we will face.

Of course, no one knows for sure. Unforeseen events can have significant effects. Changes in political regimes, the price of materials, interest rates and even unforeseen pandemics can alter the outlook quickly.

Nonetheless, businesses must make some educated estimates in order to plan and move forward.

To give readers a feel for what 2025 might look like from different perspectives, Crane Hot Line asked experts from various aspects of the industry to tell readers a few key trends they expect in 2025.

Representing general contractors is Ken Simonson, chief economist for the Associated General Contractors of America( AGC).

Looking from the fleet owner’ s viewpoint is Chad Rados, project coordinator for the ALL Family of Companies, one of the United States’ largest crane rental operations.

Looking from the financier’ s perspective is Harry Fry, president of Harry Fry and Associates, a finance and lease source dedicated to the crane and lifting industry.

Giving a look from the crane manufacturer’ s point of view is Pat Collins, director of product marketing at Link-Belt Cranes.

And looking from the crane dealer’ s point of view is Jason MacKenzie, president of Select Crane Sales, which sells and rents both new and used units.

Crane Hot Line thanks them all for sharing their insights with our readers.

General Contractors

Ken Simonson, chief economist, AGC

The outlook for construction is generally positive but has become more uncertain since the election.

Demand is strong for data centers, power projects, manufacturing plants and several categories of infrastructure. But the prospect of higher tariffs may drive up construction costs and invite retaliatory action by U. S. trading partners. Both of these consequences could lead to project cancellations.

While the stock market reacted favorably to the election results and the Federal Reserve continued cutting its short-term interest rate target, long-term interest rates moved higher.

These mixed impacts suggest that economic expansion is likely to continue but home buyers and issuers of municipal bonds, such as school districts, will face higher borrowing costs, limiting the growth of homebuilding and public construction projects.

Possible policy changes affecting both would-be immigrants and long-time foreign-born residents add yet another element of uncertainty to the outlook.

Contractors overwhelmingly list difficulty finding qualified employees as their top challenge.

The industry has long relied on foreign-born workers, and even a threatened reduction in that supply will make it harder to complete projects on time and on budget.

On the positive side, contractors can expect more favorable tax and regulatory policies than in recent years. But the timing of any changes remains murky.

In short, the industry is looking forward to further economic growth and strong demand for several types of largescale projects.

However, it remains to be seen whether a new mix of policies provides a net benefit to the sector.

AGC research predicts top construction trends for 2025.( List courtesy of the Associated General Contractors of America)

Fleet Owner

Chad Rados, project coordinator, ALL Family of Companies

The reach of the ALL Family of Companies stretches from Florida up through the southeastern U. S. and westward to Illinois, Wisconsin and Minnesota.

That footprint encompasses a variety of economies and demographics, as well as some surprises.

For example, while you’ d expect Florida to be experiencing a population

16 CRANE HOT LINE ® December 2024 • www. cranehotline. com