US construction industry managerial strategies for economic recession and recovery: A Delphi study

Economic changes impact the construction industry and the associated stakeholders involved in construction projects. Construction companies are not immune to economic downturns, as evidenced by the sharp decline and long recovery period associated with the Great Recession of 2007-2009. Therefore, construction companies and construction industry stakeholders need to infuse specific economic strategies into their business operations. To determine effective strategies for construction companies to consider for weathering the risks associated with economic downturns, a Delphi study methodology was employed. Three rounds were conducted with qualified construction economic and financial experts representing financial officers, certified public accountants, and sureties to collect and confirm the existence and effectiveness of economic strategies employed by construction firms during economic downturns and recessions. From the Delphi study, 40 strategies were confirmed as highly or moderately effective methods based on the consensus criteria established from the Delphi study across six categories (1) organizational and project management, (2) direct-cost, (3) overhead, (4) financial, (5) preconstruction and marketing, and (6) efficiency strategies. This study contributes to the body of knowledge by providing a roadmap of economic, managerial, and financial strategies that can be implemented by construction companies to improve their financial health during different economic cycles.