Also in the news...
Round five of negotiations for a free trade agreement between the Republic of India and the United Kingdom
Use this guide as a supplement when using the CHIEF and CDS trade tariffs to import and export goods to and from Great Britain (England, Scotland and Wales) after the end of the transition period.
What import and export restrictions apply due to sanctions for UK companies when trading with Russia.
Trading under sanctions with Russia
Lists of confined establishments in Great Britain, Jersey and the Isle of Man approved to export or move ungulates to the EU and Northern Ireland.
Find out about Import VAT and Customs Duty when you send gifts into the UK.
A Start-Up in US Construction is Still Profitable for those that Know the Business Well Enough
The construction business has never been easy, but it has almost always been profitable for those that know the terrain well enough. Right now, the United States has one of the largest construction industries in the whole world, which wouldnít be possible if the sector wasnít favourable for businesses in the country.
So, is it the perfect time to launch a start-up in the US? It may or may not be perfect, but the timing most certainly can be very profitable for anyone with the necessary construction training, experience and maybe even a background in the industry. Read on as we delve into the topic further.
The Stats: The US Construction Business Sees More than a Trillion USD in Expenditures
According to official statistical data published in July, 2019, the exact estimate of the total expenditure on construction projects was $1.293 billion in the United States, up until 2018. It has now been ten years since the recession had hit, and America has certainly recovered with an even more powerful construction industry than the one it had before.
Keep in mind that 2019 is nearing its end, and by all estimates, it will add a significant amount to that number, which we will just have to wait to find out a few months later when the reports come out in 2020.
Resurgence of the Residential Construction Sector is Playing a Huge Role
As was presented in various sets of connected micro data from both the US Labour Department and private stat sites, resurgence of residential construction has been instrumental in making the construction economy grow strong once again since the recession days.
Growth of Construction: Understanding the Key Geographical Locations
As residential real estate is the most profitable segment to get into right now, it is important to know which areas are growing at the highest rate, and which regions may not be the best places to launch a brand-new start-up in construction.
In 2018, the New England region has shown the least amount of construction prospects in the country, while the Pacific and South Atlantic regions have shown remarkable boom in 2018. As a matter of fact, construction expenditures in the most booming regions were nearly four to five times the total expenditure seen in the sections with the lowest numbers.
The difference doesnít necessarily indicate there isnít profit to be made in New England or the Mid-Atlantic areas, but it does show where the chances of success are better nevertheless.
How Should You Prepare?
Now that we have discussed some of the key facts in regard to the US construction industry as a whole, and the possibilities of growth in certain sections of the country, itís time to take a look at the business prospects from a more personal perspective.
The Competition: Itís Not the Big Conglomerates
Profitable as it maybe, this industry is also an extremely competitive market, with huge players in it who have everything that start-ups canít possibly have. Then again, itís true for every segment of business in the developed world, so that shouldnít be too much of a problem to begin with. There are multibillion-dollar food chains such as McDonaldís, Burger King or KFC that are booming too, but their growth isnít stopping the small, local burger joints from seeing profits either.
The same applies to launching a start-up in construction as well, because you are not going to bid for a multimillion-dollar project against the Kiewit Corporation, at least not right away hopefully!
The point is that start-ups do not need to worry about the huge competitors in the market, because they are simply not going to work at the same level that the international firms are working at right now. It may become a factor in the future though, which is if you manage to get everything right and stay in the industry for years to come.
On the other hand, there are multiple smaller construction businesses of various kinds and size that you will need to compete against, and more so as the business grows. This is once again the reason why choosing the right place to start is so important.
Where Should You Start From?
The first location of your construction business needs to be perfect, as itís a make or break decision that you canít judge poorly. A few factors should be taken into account before selecting the right location.
Is a region lagging behind on the annual construction expenditure charts due to a lack of contractors, or a lack of the necessary funds? Taking a look at the average income of the cities, states and counties in those sections will help you to determine the cause.
If the location needs more contractors at affordable rates, itís a potential place for start-ups to begin their ventures in. On the other hand, when you find out that a region has huge construction expenditures by its side on the chart, but most of it is for large-scale industrial or residential constructions, that would have little relevance to a small business looking to get into the smaller residential sector. Renovation, roofing, maintenance, singular residential structures, etc. should be your gateway market into the industry.
What Do You Actually Know about the Construction Business?
If you have a family business in the UK already, the booming market in the US could be tailormade for your expansion plans, but make sure you have proper construction training before starting. A family business might be of immense help, but construction training will help you fill in the knowledge gaps and make your understanding of the trade strong enough to take on the ambitious venture, backed up by the exact knowledge regarding how to proceed.
In case you do not have a business back home, the good news is that it shouldnít matter much either. The laws that govern construction businesses in the United States are quite different from the ones in the UK, so you will likely need to look for construction training that is specific to United States anyway!
Whether you have experience as a business leader, as a construction manager, or no experience whatsoever, a short construction training course might help towards getting yourself ready for the challenges of launching a new construction business in the States. The best part about the construction training courses on Findcourses.com is that they are mostly short, inexpensive programs which only take a few hours or less to complete, but at the end of the program, you will know everything from how to fight fraudulence in the construction business and assessing liability/risk factors, to even managing the complex IRS tax system for small construction businesses.
Take the time you need and complete all the courses relevant to your businessís idea, because you will need them to start a new company in another country. It may not be the easiest idea to pull off, but if you were to relocate in another country and start a construction business there, there is likely no other nation more suited for that than America at the moment, mainly since the construction economy here is reaching all new heights after staying down since the year 2008.