Budgeting with Precision to Safeguard Your Business and Keep Projects on Track
By Greg Sousa
Executive Vice President, Chief Lending Officer, Orange Bank & Trust Company
As a business owner in the contracting and construction industry, you juggle countless decisions, challenges, and local issues every day. Global events may not always be top of mind, yet they can have a direct impact on your business. From the war in Ukraine to trade policies with China and actions taken by the U.S. federal government, these factors shape the economic landscape in ways that affect your costs, supply chains, and overall market conditions.
Navigating the Financial Landscape
Staying informed about economic risks, market trends, and financial shifts is essential for long-term success—especially in construction and contracting, where material costs, financing, and project timelines are closely tied to broader economic forces.
For example, while many people expected interest rates to drop significantly in 2025, the Federal Reserve has indicated cuts may be slower and more modest than anticipated. This means borrowing costs could remain higher for a longer period, which could impact everything from equipment financing to new development projects.
It also is important that, as you gauge market trends, you plan accordingly to prepare for uncertainties. The right financial guidance can help you manage cash flow, secure the best financing options, and position your business for stability and growth in a changing market.
Staying Ahead of Rising Costs and Disruptions
The potential tariffs on steel imports into the U.S. are expected to drive up construction costs and could delay project timelines. While the full impact is uncertain, one thing is clear—business owners and contractors must be proactive in their planning to stay ahead of rising expenses and supply chain disruptions.
Now more than ever, budgeting with precision is essential. Building a strong contingency plan can help mitigate unforeseen challenges. Consider setting aside an additional 5 percent to 10 percent in your budget to account for unexpected costs, whether due to material price increases, project delays, or other economic uncertainties.
While the construction landscape may be unpredictable, a well-prepared strategy can help safeguard your business and keep projects on track.
Executive Vice President, Chief Lending Officer, Orange Bank & Trust Company
As a business owner in the contracting and construction industry, you juggle countless decisions, challenges, and local issues every day. Global events may not always be top of mind, yet they can have a direct impact on your business. From the war in Ukraine to trade policies with China and actions taken by the U.S. federal government, these factors shape the economic landscape in ways that affect your costs, supply chains, and overall market conditions.
Navigating the Financial Landscape
Staying informed about economic risks, market trends, and financial shifts is essential for long-term success—especially in construction and contracting, where material costs, financing, and project timelines are closely tied to broader economic forces.
For example, while many people expected interest rates to drop significantly in 2025, the Federal Reserve has indicated cuts may be slower and more modest than anticipated. This means borrowing costs could remain higher for a longer period, which could impact everything from equipment financing to new development projects.
It also is important that, as you gauge market trends, you plan accordingly to prepare for uncertainties. The right financial guidance can help you manage cash flow, secure the best financing options, and position your business for stability and growth in a changing market.
Staying Ahead of Rising Costs and Disruptions
The potential tariffs on steel imports into the U.S. are expected to drive up construction costs and could delay project timelines. While the full impact is uncertain, one thing is clear—business owners and contractors must be proactive in their planning to stay ahead of rising expenses and supply chain disruptions.
Now more than ever, budgeting with precision is essential. Building a strong contingency plan can help mitigate unforeseen challenges. Consider setting aside an additional 5 percent to 10 percent in your budget to account for unexpected costs, whether due to material price increases, project delays, or other economic uncertainties.
While the construction landscape may be unpredictable, a well-prepared strategy can help safeguard your business and keep projects on track.