b'Business ManagementRECESSION READINESS:VALUE PROTECTION AD HERESTRATEGIES FOR CONTRACTORSBy Laura Cataldo, Baker TillyConstruction contractor optimismand recreation markets. Private office, education, for2020ishigh,andbacklogshospital, and warehouse markets are forecast to lead arestrong,butthequestiononnonresidential construction growth through 2020.every contractors mind seems to be, When is the next recession?Protecting Asset Value Is Not Limited to the FormerFederalReserveChairBalance SheetJanet Yellen believes there is always some chance of recession in any year. (1)Based on reports fromBeing prepared for a potential recession is more multiple national construction economists, 2020 ispertinent now than ever. To ensure stability during forecasted to be a year of continued, yet slowing,different economic cycles, contractors should always growth. be focused on protecting the value of their assets. Value protection is a holistic and enterprise-wide An outlook of slowing growth is supported by FMIefforttoprotectyourstrategicresources/assets Corp.s projection (2)that U.S. construction spendingand is not limited to your financial balance sheet. for all sectors will increase from $1.35 trillion in 2019Your most valuable asset is your human capitalto $1.46 trillion in 2022. This will be a much moreemployees are responsible for your ability to make modest growth rate than the national nonresidential(or lose) money on every project. With workforce increases of 21.1% over the last 5 years, primarily ledchallengestoppingthelistofeveryindustrys by strong growth in lodging, office, and amusementconcerns, contractors must formalize their strategies 20 www.mrca.orgMidwest Roofer'