Economics for Business

Essay by KinghighUniversity, Bachelor'sA+, July 2005

download word file, 17 pages 5.0


Team B will discuss the Home Building industry and how it is impacted by the macro economy. We will cover the industry's opportunities, strengths and weaknesses as well as the threats and trends. The six economic indicators chosen that in some way shape or form impact the home building industry are Housing Starts, Mortgage Rates, Retail Sales, Interest Rates, Personal Income and the Foreign Exchange Rate. The team will discuss each economic indicator and their forecasts, and then offer our final recommendations and strategic initiatives.

Home Building Overview

"In the United States, there are more than 100 million housing units with the majority of them being single-family dwellings, or houses (Brian, 2005). There are building standards that home-builders must meet to ensure there is consistency for building codes across the United States. Maintaining home building standards ensures that homes are built at a reasonably quick pace and as low cost as possible.

There are many people and businesses tied to the home building industry. These businesses range from architects to interior designers. There are contractors who are responsible for coordinating the building of the home which will utilize the services of electricians, plumbers, installers, roofers, painters etc. These contractors typically subcontract various projects such as plumbing, electrical work and installing a water main in order to complete a home. Contractors themselves are not usually able to specialize in all areas that are required in building a home so they hire specialists to get it done.

Currently one of the newest trends is to recycle the materials that are considered waste when constructing a home. There are many markets for recycled products which will decrease the amount of waste that ends up in landfills. "The construction waste and demolition debris (C&D) recycling market is growing, vibrant, but a relatively...