finance

🇧🇷🇺🇸-  Book: Making Things Think: https://holloway.com/mtt. Investor in Wander, Carry, Footprint, Merkle Manufactory (Farcaster), Dynamic, Paragraph.

Do you have any thoughts around this? I assume until rates go lower, less people are thinking about new construction?

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debt is more expensive because rates are higher, and construction projects are a weird investment category, being high risk because of unpredictable profit margins (could lose or make a lot on individual projects), in part due to long lead times on approvals and construction itself

basically the cashflow in construction businesses is extremely tight and and increased debt servicing costs blew out budgets and so new starts were cancelled to balance cash flow, but this also means lower cashflow in the future as those projects would have been mostly profitable eventually

awful feedback loop

eventually if rates stay the same or go lower things will readjust and starts will increase again, but the rapid increase in rates causes a huge cashflow shock as construction is so capital intensive

used to do it, great trade imo if you do the trade route

happy I did it and also happy I quit the industry

getting paid to learn is the way, lots of computer touching would be better as an apprenticeship structure but universities would lose money and thus will fight any attempts to standardize it

makes sense. just finished my electricians apprenticeship..might me a good time to pivot :)