Let's talk economy. The struggle, success or failure of the construction industry is tied to the cyclical process inherent in the real estate industry.  Four major phases comprise that real estate cycle and are characterized as recession, recovery, expansion, and oversupply. Despite some growing positive trends and optimistic forecasts, the economy is etched somewhere between the end of the recession phase and the birth of the recovery phase.   
My prediction is that the private sector market will improve over the next few years, while the public sector will continue to weaken. I also have a strong inclination that the agriculture and food processing sectors will almost single-handedly carry the construction industry over the next few years in the Central Valley.

Why will public sector work begin to fade? Despite the lack of funding sources, the stark difference between municipal projects and private sector projects is the time span from conceptualization to completion. Municipal projects, even after the passing of a bond measure on the ballot, will linger in the pipeline for roughly three to five years, while private sector projects tend to have secured funding which makes the construction process a much more condensed time frame.

Certainly the November presidential election will dictate the shape and speed with which this economy and the recovery will take on, but first, it is important to acknowledge the implications of ObamaCare over the course of the next five years. In short, ObamaCare will drastically change the face of healthcare and the way those facilities operate; healthcare facilities will be redefining their profit centers in an effort to garner some type of capital dollars. They will be forced to increase elective surgeries in the hopes of attracting more cash patients, offer more pre and post-surgical services, and develop creative ways to create cash flow. Filling beds won't be the problem, fulfilling the accounts receivables will.

With cities declaring bankruptcy up and down the state of California, it's no wonder contractors will be leery of bidding on city-funded municipal projects - healthcare, education and government included.

The good news, though, is that growth in the private and agricultural sectors is on the horizon; we are hopeful we will secure some of those projects and calmly sail into the economic recovery phase.