More likely than not, the U.S. economy will enter a recession this year, Bankrate’s Fourth-Quarter Economic Indicator poll found. The U.S. economy has a 64 percent chance of contracting in 2023, according to the average forecast among economists.
Many economists are predicting that the United States will likely tip into a mild recession in 2023. That means economic growth and the labor market would weaken, but a downturn could be relatively brief and not too painful.
But it doesn’t matter if it’s a mild recession or one like the housing recession of 2008, you need to be prepared for the worst and hope for a mild one.
Where does offsite and modular manufacturing stand amid a recession, and what impact does a recession have on our industry?
Trying to weather this alone is tough and that’s why Daniel Small and Gary Fleisher, the Modcoach, are hosting a Da Vinci Offsite Construction Roundtable entitled Preparing for a Recession starting Feb 9th.
If we look at what history shows us, there’s no doubt that a recession is tough on not only offsite manufacturing processes but on every layer of our economy, all the way down to consumer behavior.
Offsite manufacturers face the shift and strain of economic instability, and with the current state of our economy, it is safe to say the pressure is already present. However, history also reveals that economic downturns are cyclic and are a natural part of the wax and wane of the market.
We will be facing higher production costs, an increase in lead times due to labor, transportation and continuing shocks to in the supply chain.
One of the biggest reasons offsite construction is so sensitive to a recession is conservative new home buyers may put off buying decisions until after the recession because their employment situation may change.
Many of the problems in today’s manufacturing industry come from the recent COVID recession, such as supply chain delays, inventory storage, and labor shortages.
If you are concerned about what you should be doing to help your company prepare and react to this coming recession, join the DaVinci Roundtable starting February 9th.
Each Roundtable is totally interactive. There is no listening to someone drone on and on about what you should be doing in your factory. Instead, Daniel and I lay out each topic and help you interact with others so both the good ideas that have worked and what haven’t worked for you are shared with everyone in the cohort.
Hearing what others have done means you don’t have to pay for mistakes others have made and hearing about their successes. You’ll also make new connections that you can turn to for advice or they can turn to you for help.
The four topics for the first half of 2023 are:
FEB. 9, 16, 23: Preparing for a Recession
MAR. 2, 9, 23: Strengthening the Supply Chain
APR. 6, 13, 20: Process Optimization
MAY. 11, 18, 25: Solving for Labor
Each roundtable consists of three 90-minute sessions. Daniel and I will pose questions about what you are currently doing about each topic and encourage the others to jump in and work together to find answers.
Gary Fleisher is the Editor in Chief of Modular Home Source and Offsite Builder magazine. Email at [email protected]
Gary Fleisher, the Modcoach
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