High interest rates delay or kill project financing for customers
Definition
64% of contractors cite rising interest rates and financing costs as their biggest concern for 2024-2025. Higher rates directly impact end-customer project economics: residential, commercial, and industrial developers face higher borrowing costs, making projects economically unfeasible or forcing delays. This cascades to construction managers: projects are canceled, shelved indefinitely, or significantly delayed. Apartment buildings, mixed-use developments, retail centers, and office complexes are particularly vulnerable. For SMB construction managers, this translates to: (1) lost revenue from canceled projects, (2) extended idle capacity while awaiting project restart, (3) opportunity cost of capital tied up in pre-project work. Many SMBs pre-finance early-stage work (design, permitting, site prep) and lose this investment if projects don't proceed.
Key Findings
- Financial Impact: $750,000 - $3,000,000
- Frequency: monthly
Why This Matters
Project pipeline forecasting tools, customer financial viability screening services, project phasing/modular delivery consulting, financing advisory partnerships, project insurance/bonding products
Affected Stakeholders
Owner/Principal/Construction Manager, Project Manager / Operations Manager
Deep Analysis (Premium)
Financial Impact
Data available with full access.
Current Workarounds
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Methodology & Sources
Data collected via OSINT from regulatory filings, industry audits, and verified case studies.
Related Business Risks
Critical shortage of skilled construction workers
Rapid escalation of direct labor costs and wages
Material cost volatility and inflation squeeze margins
Hiring and deploying inexperienced workers creates safety and quality liabilities
Buy America Act compliance creates project delays and cost uncertainty
Project delays due to supply chain disruptions and material availability
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