Strategies Employed and Lessons Learned by Commercial Construction Companies during Economic Recession and Recovery

Abstract

The purpose of this research was to identify strategies used and lessons learned by western U.S. commercial construction companies during the great recession (2007–2009). The experience gained by companies who weather an economic downturn must be absorbed into the corporate structure in a meaningful way if that knowledge is to be accessible for future recessions. This study focused on identifying and better understanding the specific approaches that commercial construction companies employed to weather the great recession and the corresponding lessons learned. A stratified purposeful sampling survey was conducted across 15 different commercial construction companies and included 57 participants in various management roles. This paper provides a comprehensive list of 124 different strategies or lessons learned across six principal categories: (1) contracting, (2) risk management, (3) cost-control, (4) human resources, (5) financial, and (6) investment related responses. This paper also provides recommendations for commercial construction companies to consider during various economic cycles on the basis of the lessons learned during this recession and recovery.