Construction start-ups on the rise

Posted by IronPlanet on Mar 22, 2012 9:16:00 AM

The term "start-up," typically brings to mind small computer and software development companies or other businesses based in traditional office space. However, The Wall Street Journal reports that the fastest-growing new companies are not in the tech industry, but construction.

Construction jobs took a big hit during the economic downturn, but new projects on the horizon have resulted in an increase in opportunities. Many of those laid off in the recession opted to start their own small construction companies, and this decision is now paying off. Overall business creation was down 6 percent in 2011, but new construction companies are up 24 percent.

"Improvements in home building last year meant that new construction firms were not swimming against as strong a current as in the previous four years," Stuart G. Hoffman, chief economist for the PNC Financial Services Group in Pittsburgh, told the news source.

Like every business, construction companies rely on technology as well, from computers to major equipment. For businesses looking to purchase equipment without investing as much of their capital, they can purchase equipment from IronPlanet. The online auction site offers a wide selection of used construction equipment from backhoes and bulldozers to cranes and air compressors, all at a more affordable price than buying new.

Topics: Construction, Industry Headlines