Sixty-seven percent of U.S. businesses expect to spend more on construction in the next six months, and 72% expect to spend more on raw and processed materials (e.g., chemicals, metal, lumber), according to a recent survey from American Express1.
“This Global Business Spend Indicator survey signals that U.S. businesses are spending more on construction, likely due to a combination of factors, including today’s inflationary environment, supply chain challenges and - on a positive note - the ability to resume projects paused during the pandemic. Mirroring anticipated increased spending on construction, businesses are also spending more on raw materials,” said R.J. Ancona, VP of B2B at American Express.
With construction spending expected to remain high, now is the time for construction business owners to ensure they have the right financial solutions in their toolbox to meet this growing demand. That’s where American Express comes in.
Streamlining Cash Flow with American Express Products
Rising demand means that construction business owners often must front cash for raw materials even as costs for those materials rise, leaving them to juggle payments owed by past clients. American Express offers tools and a suite of card products built to help meet the B2B spending needs of businesses, helping ease cash flow management through automation, pay-over-time options, and other features. Below are just some examples of those:
- American Express One AP™2, a digital Accounts Payable (AP) automation solution, is designed to seamlessly work with a business’s existing accounting system or ERP, so they can automate payments from one platform, and make payments via an American Express Card, check, or ACH, reducing manual processes with confidence. One AP is available to suppliers in the U.S.; enrollment is required, and fees may apply.
- American Express offers American Express Business Checking3, which processes a range of payment types, earns high-yield APY on balances up to $500,000, and includes a business debit card4.
- The American Express Business Platinum Card5 offers the Pay Over Time option on eligible purchases, as well as 1.5X Membership Rewards® points on eligible purchases at U.S. construction material and hardware suppliers, up to $2 million of these purchases per calendar year6.
- The Lowe’s Business Rewards Card from American Express7 offers cash back rewards such as 2% cash back on Lowe’s purchases and at U.S. restaurants, U.S. office supply stores, and wireless telephone services purchased directly from U.S. service providers. Cash back is received in the form of Lowe’s Business Rewards points that can be redeemed for statement credits or select gift cards.
Using Contract Connections as a Tool for Growth
From cash flow considerations to increased equipment demands, American Express understands and serves the specific needs of the construction industry with its small and mid-sized business products and services. And it offers a wealth of innovative resources designed to help businesses do more business. American Express’ Contract Connections, which connects buyers with suppliers and helps owners secure contracts with corporations and government agencies, has facilitated more than 35,000 meetings between small business suppliers and procurement professionals since 2012, resulting in more than $750 million in contracts for small businesses.
One of the many success stories includes Miami-based Lunacon Construction Group, a Hispanic, woman-owned construction management company. Lunacon’s owner and president Patricia Bonilla has been a part of Contract Connections for more than a decade and credits the program for contributing to her business success. Government contracting transformed her business from a startup run out of her garage with two employees into a growing, multi-million-dollar business. Today, Patricia manages commercial projects with contract value more than $485 million.
“American Express has been a part of my business journey from the very start,” explains Bonilla, who has more than 30 years of experience in the field. “Through Contract Connections, I gained valuable access to government buyers and knowledge on how to turn that access into contract opportunities.”
But it’s not only about access. “I also built relationships with consultants, partners, and mentors which helped me to grow my business to what it is today,” continues Bonilla. “Understanding the importance of connections for brand awareness and exposure is crucial—and relationships are an invaluable resource.”
The takeaway? Harnessing the power of connections at scale, no matter where you are in the growth journey of your business, is critical. Utilizing programs like Contract Connections can help position your business for growth.
As the construction industry continues to thrive, construction business owners must be set up for success to meet their growth goals. American Express can help construction businesses foster connections, streamline cash flow, and earn valuable rewards to help get projects done—and ultimately, rise to meet this moment. Because one thing is certain: the time to capitalize on the construction boom is now.
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1.The Global Business Spend Indicator by American Express is in its third edition, surveying more than 3,500 businesses of all sizes in the U.S., UK, Australia, Canada, Japan, and Mexico, tracking business spending trends and is conducted with the Centre for Business and Economic Research. The survey ran from 26th April to 9th May 2022.
2. For full Terms and Conditions, see here.
3. For full Terms and Conditions, see here.
4. Accounts offered by American Express National Bank. Member FDIC. Funds deposited within American Express National Bank deposit accounts are insured by the Federal Deposit Insurance Corporation (FDIC) up to at least $250,000 per depositor. Coverage amounts vary based on factors such as account ownership, beneficiaries, and number of accounts with the same institution. For additional information, you may visit the FDIC website at www.fdic.gov.
5. For full Terms and Conditions, see here.
6. Terms and Conditions for the Membership Rewards® program apply. Visit membershiprewards.com/terms for more information. Participating partners and available rewards are subject to change without notice. The value of Membership Rewards points varies according to how you choose to use them. To learn more, go to www.membershiprewards.com/pointsinfo.