Inner Circle
Join Inner CircleJoin
← Back to Listen
Content

ICYMI — Why Are There So Many Abandoned Construction Projects?

⏱️ 5:41 🎤 Ellen Parson, Tom Zin, Devin Bell, Greg Paddelucky
AUDIO EPISODE
ICYMI — Why Are There So Many Abandoned Construction Projects?
0:00
0:00

Chapters

Click to jump to section

  • 0:00
    Introduction & Sponsorship
    The episode begins with a thank you to sponsors and an introduction to the EC&M On Air podcast.
  • 0:54
    Understanding Project Abandonment
    Host Ellen Parson introduces the topic of abandoned construction projects, referencing an article by Tom Zin.
  • 3:38
    Causes of Abandonment Surge
    The discussion delves into data from Construct Connect, showing a significant surge in project abandonments due to economic uncertainty, interest rates, tariffs, and labor costs.
  • 9:06
    Economic Impact & Outlook
    Economist Devin Bell's insights are shared, linking increased abandonments to growing pessimism and sustained high cost of capital.
  • 10:53
    Contractor Strategies
    Greg Paddelucky of Alterman Inc. discusses how contractors can mitigate risks by vetting projects and focusing on stable sectors like data centers.
  • 12:02
    Future Economic Shifts
    The episode concludes by considering how interest rate changes could impact construction, either boosting confidence or signaling a recession.

Speakers

E
Ellen Parson
Host — Editor in Chief of EC&M
T
Tom Zin
freelance writer
D
Devin Bell
Construct Connect economist
G
Greg Paddelucky
President, CEO of Alterman Inc

Key Takeaways

✦

Diligently vet new projects: Increased economic uncertainty makes it crucial to thoroughly evaluate the viability of potential projects before committing resources.

✦

Monitor economic indicators: Pay close attention to interest rate trends, tariff policies, and labor cost forecasts as they significantly impact project viability.

✦

Be cautious with pre-construction work: Recognize the risk of doing free pre-construction work on projects that might be abandoned.

✦

Focus on recession-resilient sectors: Consider prioritizing work in less subjective and more stable sectors like data centers or essential infrastructure projects that are less prone to abandonment.

✦

Understand developer motivations: Be aware that developers are frequently recalibrating project viability based on economic projections, leading to more frequent cancellations.

✦

Stay informed on market outlook: Regularly review industry reports and expert opinions (like Construct Connect's Project Stress Index) to gauge the overall health and future direction of the construction market.

Want the full experience?

Join the Inner Circle for full access to every episode, AI-powered insights, personalized coaching, and a network of industry leaders.

Join Inner Circle →
POWER100

Inner Circle Membership Portal © 2026 Power100. All rights reserved.

power100.io