{"id":32354,"date":"2025-09-17T21:00:38","date_gmt":"2025-09-18T04:00:38","guid":{"rendered":"https:\/\/essential.construction\/news\/contractors-welcome-rate-cut-push-for-more\/"},"modified":"2025-09-17T21:00:38","modified_gmt":"2025-09-18T04:00:38","slug":"contractors-welcome-rate-cut-push-for-more","status":"publish","type":"post","link":"https:\/\/essential.construction\/news\/contractors-welcome-rate-cut-push-for-more\/","title":{"rendered":"Contractors welcome rate cut, push for more"},"content":{"rendered":"<p> [ad_1]<br \/>\n<\/p>\n<div>\n<div class=\"text-to-speech\">\n    <button class=\"text-to-speech__button button\"><br \/>\n        <img decoding=\"async\" class=\"text-to-speech__button__icon\" src=\"https:\/\/www.constructiondive.com\/static\/img\/play.svg?500116090725\" alt=\"-\"><br \/>\n        Listen to the article<br \/>\n        <span class=\"text-to-speech__button__audio-length\">4 min<\/span><br \/>\n    <\/button><\/p>\n<div class=\"text-to-speech__controls\">\n        <audio controls=\"\" class=\"js-text-to-speech\" preload=\"none\"><source src=\"https:\/\/res.cloudinary.com\/dmgi9movl\/video\/upload\/q_1\/v1758132790\/news\/text_to_speech\/contractors-interest-rate-cut-push-more_b4m418.wav\" type=\"audio\/mp3\"><\/source><\/audio><\/p>\n<div class=\"text-to-speech__controls__text\">\n            This audio is auto-generated. Please let us know if you have <a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/contact\/\" target=\"_blank\">feedback<\/a>.\n        <\/div>\n<\/p><\/div>\n<\/div>\n<p><span><span><span><span><span><span>Contractors finally got the news they had been waiting on, a rate cut that could rouse the sleeping construction market.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>The Federal Reserve cut its benchmark interest rate by 25 basis points <\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span>on Wednesday afternoon. The move should provide the construction industry with a much-needed confidence boost and push nearly ready projects across the starting line.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>More importantly, it could \u201cfinally wake up the bear from its slumber,\u201d said Scott Lyons, the commercial core market leader at DPR, a Redwood City, California-based general contractor.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Nonresidential construction <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/construction-spending-slide-deepens\/759102\/\" target=\"_blank\"><span><span><span><span><span><span><span>spending slipped in July<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> and trails last year\u2019s level by 1.1%, according to the most recent available data. Builds financed with <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/private-project-abandonments-record-high\/750100\/\" target=\"_blank\"><span><span><span><span><span><span><span>private funds<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> have largely struggled, though <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/contractors-data-center-demand-growing-bubble-fears\/750985\/\" target=\"_blank\"><span><span><span><span><span><span><span>data center construction<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> continues to boom.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cSome mixed-use and hospitality projects should move forward with an occasional Class A+ office,\u201d Lyons told Construction Dive. \u201cWe have been seeing an uptick in tenant improvement projects for the fall quarter, which shows there\u2019s some budding momentum.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>But contractors say one cut will not reset the market, especially with labor costs and <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/rising-materials-costs-test-construction-producer-price-index\/759940\/\" target=\"_blank\"><span><span><span><span><span><span><span>trade policy crosswinds<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> still in play. For DPR, meaningful activity will only arrive with a series of cuts that steadily ease pressure on developers, said Lyons.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cAlthough a cut of <\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span>25 basis points<\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span>\u00a0is a good start, we don\u2019t believe this first cut will be enough to start the engine,\u201d Lyons told Construction Dive. \u201cWe believe it will take a series of cuts in order to get some deal momentum underway.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Other contractors feel the same way.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<figure class=\"image-right inside_story\">\n<div class=\"figure_content\">\n<div><img decoding=\"async\" alt=\"Granger Hassmann\" data-imagemodel=\"169637\" src=\"https:\/\/imgproxy.divecdn.com\/_p2OQZ7DUdhvKD5kF-5kQg00Fjdhrw0aIHhYHZKYWzQ\/g:nowe:2:0\/c:319:399\/rs:fit:0:860\/Z3M6Ly9kaXZlc2l0ZS1zdG9yYWdlL2RpdmVpbWFnZS9TY3JlZW5zaG90XzIwMjQtMTEtMDFfYXRfOS41Mi41M0FNLnBuZw==.webp\"\/><\/div>\n<\/div><figcaption class=\"inside_story_caption\">\n<p>Granger Hassmann<\/p>\n<p>Courtesy of Adolfson &amp; Peterson<\/p>\n<p>\u00a0<\/p>\n<\/figcaption><\/figure>\n<p><span><span><span><span><span><span>For example, Granger Hassmann, regional president at Adolfson &amp; Peterson, a Minneapolis-based general contractor, said though the decision is a step in the right direction, it remains hard to say if there will be any immediate <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/construction-stress-eases-but-contractors-remain-cautious\/757335\/\" target=\"_blank\"><span><span><span><span><span><span><span>impact on the private market<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cFrom where we stand, it might help projects that were on the edge of being financially viable, but one small rate cut on its own probably won\u2019t lead to a big global shift just yet,\u201d Hassmann told Construction Dive. \u201cIf this is the start of a trend, though, we could start to see more activity and movement in privately funded projects.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Nevertheless, the cut will allow certain projects to issue a notice to proceed, said Robert Brown, CEO of GCM Contracting Solutions, a Fort Myers, Florida-based general contractor. Projects with capital-ready owners, lender terms substantially set, permits and design in advanced stages and a delivery partner already engaged are most likely to cross into the construction phase soon, he added.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<figure class=\"image-right inside_story\">\n<div class=\"figure_content\">\n<div><img decoding=\"async\" alt=\"headshot of Robert Brown\" data-imagemodel=\"183570\" src=\"https:\/\/imgproxy.divecdn.com\/rx8bg6ZpsBSyEfIPeV2jB8uaOpvXevWbcl7C-iikIU0\/g:nowe:0:4\/c:2133:2666\/rs:fit:0:860\/Z3M6Ly9kaXZlc2l0ZS1zdG9yYWdlL2RpdmVpbWFnZS9Sb2JlcnRfQnJvd25fSFIuanBn.webp\"\/><\/div>\n<\/div><figcaption class=\"inside_story_caption\">\n<p>Robert Brown<\/p>\n<p>Permission granted by GCM Contracting Solutions<\/p>\n<p>\u00a0<\/p>\n<\/figcaption><\/figure>\n<p><span><span><span><span><span><span>\u201cRate cuts help at the margins, but in our world it\u2019s not a magic switch,\u201d Brown told Construction Dive. \u201cOwners who were already within reach may use this as the moment to green light.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<h3 class=\"standard-heading\"><span><span><span><strong><span><span>Value of strong teams, further cuts<\/span><\/span><\/strong><\/span><\/span><\/span><\/h3>\n<p><span><span><span><span><span><span>Brown said though a cut can get owners off the sidelines, what really will shorten timelines today is the team put around the project. Lyons agreed, adding firms that jump in now are best advised to bring contracting partners to the table to assess <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/immigration-construction-job-openings-increase\/759289\/\" target=\"_blank\"><span><span><span><span><span><span><span>labor availability<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> as early as possible.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cThe labor market is the wild card,\u201d said Lyons. He added even if lower interest rates jumpstart demand for new projects, the cost of labor could quickly diminish the savings from lower borrowing costs.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Contractors in Florida see the rate cut as overdue, but worry the bigger picture is still uneven, said Peter Dyga, president and CEO of Associated Builders and Contractors Florida East Coast Chapter. Most commercial builders remain busy today, but are a bit more wary regarding backlog a year or more out.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>That\u2019s where cheaper borrowing could make a difference, said Dyga.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<figure class=\"image-right inside_story\">\n<div class=\"figure_content\">\n<div><img decoding=\"async\" alt=\"Headshot of Peter Dyga.\" data-imagemodel=\"164663\" src=\"https:\/\/imgproxy.divecdn.com\/2w_lPDUUTb6x1UxtWyEWvuWJyWtTXO_DpbR9TGxC0wc\/g:nowe:249:0\/c:638:798\/rs:fit:0:860\/Z3M6Ly9kaXZlc2l0ZS1zdG9yYWdlL2RpdmVpbWFnZS9QZXRlcl9EeWdhLmpwZw==.webp\"\/><\/div>\n<\/div><figcaption class=\"inside_story_caption\">\n<p>Peter Dyga<\/p>\n<p>Permission granted by ABC Florida East Coast<\/p>\n<p>\u00a0<\/p>\n<\/figcaption><\/figure>\n<p><span><span><span><span><span><span>\u201cI think this rate cut is just going to do wonders, certainly for the economy,\u201d Dyga told Construction Dive. \u201cProbably not as big a cut as we like, but we know how they can stack up over time in terms of the reductions.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Contractors expect further rate cuts before the end of 2025 to unlock even more activity. The Fed will announce interest rate decisions again at the end of October and early December.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<section class=\"storylines-carousel-wrapper hide-small show-large\" id=\"desktop-carousel\"\/>\n<p><span><span><span><span><span><span>\u201cA cut often has a psychological impact. It boosts confidence,\u201d said Brown. \u201cEven if the math only changes slightly, it can make owners feel better about taking the plunge. That\u2019s important in construction, because sentiment and timing drive just as much as numbers on a spreadsheet.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<\/p><\/div>\n<p>[ad_2]<br \/>\n<br \/><a href=\"https:\/\/www.constructiondive.com\/news\/contractors-interest-rate-cut-push-more\/760293\/\" rel=\"nofollow noopener\" target=\"_blank\">This article was originally posted at Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>[ad_1] Listen to the article 4 min This audio is auto-generated. Please let us know if you have feedback. Contractors &#8230; <a title=\"Contractors welcome rate cut, push for more\" class=\"read-more\" href=\"https:\/\/essential.construction\/news\/contractors-welcome-rate-cut-push-for-more\/\" aria-label=\"Read more about Contractors welcome rate cut, push for more\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[457],"tags":[],"class_list":["post-32354","post","type-post","status-publish","format-standard","hentry","category-construction-dive","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/32354","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/comments?post=32354"}],"version-history":[{"count":0,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/32354\/revisions"}],"wp:attachment":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/media?parent=32354"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/categories?post=32354"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/tags?post=32354"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}