According to a recent survey by American Express, 67% 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, metals, wood) More1.
“This survey of Global Business Spending Indicators shows 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 suspended during the pandemic echoes the expected increase in construction spending, with companies also spending more on raw materials, said RJ Ancona, vice president 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.
Streamline Cash Flow with American Express Products
Growing demand means that construction business owners often have to pay cash for raw materials even as the cost of raw materials rises, forcing them to pay what their customers owe in the past. American Express offers tools and a suite of card products designed to help meet businesses’ B2B spending needs, helping simplify cash flow management through automation, installment payment options and other features. The following are just some examples:
- American Express One AP™2is a digital accounts payable (AP) automation solution designed to work seamlessly with a business’ existing accounting system or ERP so they can automate payments from one platform and pay by American Express, check or ACH, reducing Confidence in the manual operation process. Providers in the US can use one AP; registration is required and fees may apply.
- Provided by American Express American Express Business Check3which processes a range of payment types, earns high-yield APY on balances up to $500,000, and includes a business debit card4.
- This American Express Business Platinum Card5 Offers a “pay over time” option for eligible purchases, and 1.5X Membership Rewards® points on eligible purchases at U.S. building materials and hardware suppliers, up to $2 million in these purchases per calendar year6.
- This American Express Lowe’s Business Rewards Card7 Offers cash back rewards such as 2% cash back on purchases at Lowe’s and at US restaurants, US office supply stores and wireless phone service purchases directly from US service providers. Cash back is received in the form of Lowe’s Business Rewards points that can be redeemed for statement credit or select gift cards.
Use contract connections as a growth tool
From cash flow to increased demand for equipment, American Express understands and addresses the specific needs of the construction industry through its SME products and services. It offers a wealth of innovative resources designed to help companies do more business. American Express’ Contract Connections connects buyers with suppliers and helps owners sign contracts with businesses and government agencies, and has facilitated more than 35,000 meetings between small business suppliers and procurement professionals since 2012 for small business Businesses brought in more than $750 million in contracts.
One of the many success stories includes Miami-based Lunacon Construction Group, a Hispanic female-owned construction management company. Patricia Bonilla, owner and president of Lunacon, has been part of Contract Connections for over a decade, and she credits the program as contributing to her business success. Government contracting transformed her business from a startup with two employees running out of a garage into a growing, multi-million dollar business. Today, Patricia manages commercial project contracts worth over $485 million.
“American Express has been part of my business journey from the beginning,” explains Bonilla, who has more than 30 years of experience in the field. “Through Contract Connections, I gained valuable exposure to government buyers and knowledge of how to turn that exposure into contract opportunities.”
But it’s not just about access. “I’ve also developed relationships with advisors, partners and mentors that have helped me grow the business to where it is today,” Bonilla continued. “Understanding the importance of connections for brand awareness and exposure is critical – and human connections are a valuable resource.”
take away? No matter where you are in your business growth journey, leveraging the power of connectivity at scale is critical.Use programs such as contract connection Can help you position your business for growth.
If the construction industry continues to thrive, success must be built for construction business owners to achieve their growth goals. American Express can help construction businesses connect, streamline cash flow, and earn valuable incentives to help complete projects — and ultimately rise to the occasion.Because one thing is certain: the time to capitalize on the construction boom is Now.
Click here Learn more about American Express business products and services.
1. The third edition of American Express’ Global Business Spending Metrics surveys more than 3,500 businesses of all sizes in the U.S., U.K., Australia, Canada, Japan and Mexico to track business spending trends and is conducted in partnership with the American Express Center. Business and Economic Studies. The survey was conducted from April 26 to May 9, 2022.
2. See here for full terms and conditions.
3. See here for full terms and conditions.
4. Account provided by American Express National Bank. Member of the Federal Deposit Insurance Corporation. Funds deposited into American Express National Bank deposit accounts are insured by the Federal Deposit Insurance Corporation (FDIC) to a minimum of $250,000 per depositor. The amount of coverage varies based on factors such as account ownership, beneficiaries, and the number of accounts with the same institution. For more information, you can visit the FDIC website at www.fdic.gov.
5. See here for full terms and conditions.
6. Membership Rewards® program terms and conditions 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 depending on how you choose to use them. To learn more, visit www.membershiprewards.com/pointsinfo.
7. See here for full terms and conditions. Lowe’s Loyalty Program terms are available here. All benefits are subject to credit approval.