Technology investments key for ESG success
Q1
2024
the look ahead
Market
Overview
Inflation remains stubbornly high with three straights months of stronger than expected price increases. Hot inflation along with strong labor market data and upward revisions of the GDP, indicate there are fewer signs of an economic slowdown that would warrant interest rate cuts. The Fed was expected to announce a rate cut in June and that will most likely be delayed. Some Federal Open Market Committee (FOMC) members have communicated there is no sense of urgency when it comes to cutting rates with a couple members saying it’s possible there will be no rate cuts in 2024.
If there are no rate cuts this year, interest-sensitive industries, such as construction, will bear the brunt of an extended high-rate environment. Residential construction is carried by single-family projects. Multifamily continues to contract as increased supply dampens rent growth and credit is harder to obtain. There’s been some pullback in nonresidential as more projects struggle with higher rates and flat demand. Input prices are up slightly except for declines in pricing of steel and lumber. A concentration of mega-projects and more supply chain upheaval are likely the biggest drivers.
We examine the credit crunch, interest rates and ESG adoption in this issue’s Current Events.
Local Market Overviews
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Aptitude Spotlight
In this spotlight, Sam Holt, National Aptitude Director, discusses the rise in technology investments to support ESG-related goals for owners and operators of built environments. Aptitude: Intelligent IntegrationTM is the technology integration arm of JE Dunn; it works with IT leaders and client stakeholders to plan, design, oversee installation of, and commission efficient technology ecosystems for complex smart buildings.
“Having worked with many building owners, operators and CIOs over the years, it is crucial to make technology ecosystem planning an early priority, and make sure it’s holistic, with a solid procedure for monitoring every system, and an eye on future needs.”
Sam Holt
National Aptitude Director
Current Events
Is the Credit Crunch Softening?
The Senior Loan Officer Opinion Survey (SLOOS)) is a quarterly survey of 80 large domestic banks and 24 US branches of foreign banks.
Anticipating Lower Rates
After spending the last 12-18 months talking (and arguing) about how high the Fed would raise rates, we have finally made it to the “how long will the Fed hold rates.”
How to Make ESG Adoption Stick
More and more companies are learning how to embrace two foundational (and related) shifts in the business world: a heightened focus on environmental, social & governance (ESG) issues; and the movement towards a multi-stakeholder model of operations.
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