The United States’ Great Recession ended in June of 2009, and the time period between 2009 and 2020 saw gradual economic growth, allowing people from all industries to breathe a sigh of relief and hope that things might continue to improve.
Unfortunately, the COVID-19 pandemic halted that economic growth, and the economy again suffered a major decline. A major factor in this decline was a result of the mass casualties of the pandemic: 6 million people worldwide have passed away from the virus to date, with nearly a million people in the U.S. succumbing to the virus, including more than 14 thousand people within the state of Maryland.
Eastern Maryland construction, plumbing, and HVAC company Noland Mechanical saw particular impact from the declining economy and the general loss of people who previously made up the workforce.
Senior estimator and project manager Keith D. Clarke explains, “When the economy is healthy and things are generally on the upswing, competition between construction companies and contractors is usually not much of a problem because there are lots of jobs for everyone. But when things go south, we have to fight amongst ourselves for the same projects. That means a lot of us have to lower our rates just to get work, which can end up being a big problem for profitability.”
Because of his many years of experience in the industry, Keith D. Clarke is familiar with the trials and tribulations that the state of the economy can provide for a business. Noland Mechanical, however, has managed to escape the devastation of a struggling economy with only minor financial backlash.
Part of Noland’s success is due to their focus on mechanical contracting. For construction companies in struggling economies, it’s recommended to diversify their business. In other words, companies that focus strictly on residential projects should expand their scope to include commercial and infrastructure projects. According to Keith D. Clarke, “Noland Mechanical didn’t struggle because our scope was diverse from the start.”
In fact, even during a time when many companies were closing down or just barely staying afloat, Noland remained extremely busy due to their focus on commercial projects– like hotel and resort construction– and government-subsidized housing. Their focus on HVAC systems and Design-Build services is also a decisive factor in their continued success.
The importance of well-designed HVAC systems has never been more evident than it is today, during an ongoing respiratory virus pandemic. Proper ventilation is an important factor in safety in many industries, but when airborne virus particles carry the threat of illness and death, it’s absolutely paramount that interior spaces boast excellent ventilation.
Keith D. Clarke works personally with building owners, architects, and engineers to design efficient and effective HVAC systems– a job that is much better-defended against economic turmoil than many others as a result of the pandemic. It’ll most likely stay that way, too, as the importance of excellent ventilation becomes clear to the general public.
Though they’ve stayed in the black due to their focus on commercial projects, Noland is also a well-established name in residential projects. As a whole, the housing market has been tumultuous since an initial crash in 2008, but the economic situation of the past few years has particularly affected its wellbeing.
During times of economic difficulty, the housing market struggles because it becomes more difficult to obtain loans, which means that people are unable to purchase houses. A slow economy also affects supply– and the recent supply chain issues affecting virtually every industry in the world have not spared the construction industry. Due to supply issues with construction materials like wood, glass, and tools, building houses became astronomically expensive– further discouraging people from making any moves to build, buy or sell their homes.
After the very worst of the pandemic, the United States economy started to recover in 2021. People were hopeful that things would return to normal soon, but 2022 is starting off on somewhat uncertain footing. Currently rising gas prices as a result of the tensions between Russia and Ukraine, and sanctions set by other nations, are one major problem likely to have repercussions within many industries.
Of particular concern to the construction industry is the rising costs and limited availability of building materials like copper and steel; currently prices are down from their worst during the pandemic, but are still roughly 75% higher than the previous ten-year average.
Part of Keith D. Clarke’s duties as senior estimator of Noland Mechanical include the ability to find solutions even when things get difficult and financially unstable, but he feels confident that Noland Mechanical will avoid future disaster because of the simple fact that people will always need to build, remodel, and maintain houses, HVAC systems and plumbing. With a creative approach to business obstacles and an established and loyal client base, Noland Mechanical is likely to withstand the current economy’s struggles and many more to come.
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