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26 2019 INDUSTRY RESOURCE DIRECTORY Industry Data Factors Impacting the 2019 Economy The US economy grew the GDP at an annualized rate of 2.7% in 2017, and it got a boost in early 2018 with the Tax Reform Act. Most sources believe the positive impact of these tax cuts will fade as 2019 progresses, while general financial conditions will become less buoyant. Several factors are contributing to the slowing 2019 economic environment. • Interest rates are likely to keep rising, making borrowing costs more expensive for consumers and businesses. • Tariffs are increasing, which will impact sectors that drive construction and consumer spending. • Wall Street analysts worry that earnings growth has peaked as the bull market enters its tenth year, especially in the tech sector. • An anticipated slowdown in the global economy seems to have begun. In mid-November, the Organization for Economic Cooperation and Development lowered its forecast for global economic growth to 3.5% from its previous forecast of 3.7% growth. While it is early to begin predicting what all this will mean beyond 2019, or what the impact of policy changes that are made in the coming year might be, some experts are predicting the slowdown will continue into 2020. Portable Sanitation Outlook Portable sanitation will certainly be impacted by what is happening in the broader economy, particularly as it relates to interest rates and the impact of tariffs. More directly, the demand for portable sanitation is dependent upon three major economic sectors: construction, events, and agriculture. A fourth, emergency and disaster response, is situational and not easily forecast. Construction presents a mixed bag for 2019. Depending upon the sort of construction contracts your company relies upon for business, the news may be good, sobering, or somewhere in between. • As of November 20, 2018, Dodge Data and Analytics reported that new commercial construction starts were at their second highest seasonally adjusted rates ever, second only to June 2018. Most spending from these new starts will occur in 2020. In 2019, nonresidential building construction spending is forecast to remain essentially flat as compared to 2018 levels, then climb 8.9% in 2020 as the result of the contracts being inked in late 2018. • On the other hand, the US Census reported that construction spending for residential building shows significant reductions. Although residential spending is still increasing, growth and real volume are now slower than inflation. In 2019, expect growth to top out around 1% and in 2020 residential building may grow slightly at around 2%. Single-family dwellings appear to account for the greatest part of the slowdown. IBISWorld - global reports that building in the multifamily arena will not cool as much. So if your company typically contracts with firms building apartment complexes, particularly the less saturated non-luxury segment, you should see continued opportunities to provide portable sanitation in most major markets. Better worksites. Better weekends. Better world. EXCLUSIVE MEMBERS-ONLY CONTENT REDACTED Join us now at www.psai.org for access to this valuable information.