By Paul Milde
Just as CIP Finishes turned the page on our record 2022 sales year, we started seeing gloomy predictions about what 2023 would mean for the multifamily housing industry that we serve. Inflation, rising interest rates and recession fears have all influenced predictions that what has been a blistering-hot market will cool considerably this year.
There is no doubt that interest rates are slowing some projects. About one-third of projects we have bid were placed on short-term hold for this reason. But at the same time, our estimators are busier than ever fulfilling pricing requests for new jobs. In the first quarter of 2023, we have sold new jobs at a pace that keeps us on track to match last year’s record sales numbers.
Multifamily demand remains strong
This industry is working as hard as ever to serve the needs of this market. The Greater Washington region needs far more housing units to meet the demand of its growing population. The Metropolitan Washington Council of Governments said in 2019 that this region needed to build 320,000 new housing units by 2030 to keep pace with demand. According to Census data, the region has fallen short of the pace needed to achieve that goal for the past two years.
We expect to stay busy. And we expect to use the knowledge and experience we gained from working through previous recessions during our nearly four decades in business to serve our customers in today’s economy.
Customer relationships are our priority
Our experience working through past economic downturns has taught us that when the economy looks scary, it is time to double down on diligence in strengthening our customer relationships. Our team knows that times of great uncertainty are an opportunity to demonstrate to new and existing customers that we stick with them at every step until a job is complete.
We must maintain this focus while working at a faster pace than ever. Our pipeline is as high as it has ever been, and our current payroll for installers is the highest we’ve ever experienced. We are incredibly grateful for this opportunity to provide jobs in the communities in which we work, and to deliver excellent work for our customers at a greater scale.
CIP Finishes is a tried-and-true partner
Make no mistake—despite a less-than-ideal economic outlook for 2023, CIP Finishes is in growth mode. We are pulling out all the stops to impress our customers, to staff larger jobs than ever and to keep working closely with our partners through the twists and turns that this volatile environment continues to throw at us.
We are proud to work in the multifamily construction industry, which provides important new homes to this vibrant and growing region.
We want to help you make your next project a success. Contact our estimators today for unparalleled expertise on product selection and pricing.
We are proud to announce the following new projects sold in the first quarter of 2023:
- The Edge at Middleton – Aberdeen, Md. – CCG Residential Construction
- Crestwood Manor – Frederick, Md. – Morgan Keller
- 1313 L Street – Washington, D.C. – WCS Construction
- Halley Rise – Reston, Va. – CBG Building Company*
- Strathmore Square, Parcels 3A and 3B – Bethesda, Md. – Whiting-Turner
- Terrace Manor Apartments – Washington, D.C. – WCS Construction
- 113 Potomac Avenue – Washington, D.C. – CBG Building Company*
- The Cascades – Frederick, Md. – Morgan Keller
- West Falls Church A&D — Falls Church, Va. — Bozzuto
- Erickson Senior Living-The Grandview — Bethesda, Md. — Whiting-Turner
(* indicates jobs of $1 million or more)