Economists from Associated Builders and Contractors (ABC), American Institute of Architects (AIA), and National Association of Home Builders (NAHB) predicted continued construction industry growth in 2016 during a joint economic forecast web conference Tuesday.
“The nonresidential construction sector gained momentum over the last year and should continue to expand into 2016,” ABC Chief Economist Anirban Basu said. “The construction industry has benefited from increased stability stemming from low materials prices and greater certainty regarding federal budgeting and monetary policy, although a lack of appropriately skilled labor will remain a challenge for contractors. ABC predicts the nonresidential construction segment will experience 7% nominal growth in 2016.”
“Led by tremendous demand for energy-efficient spaces, spending on home improvements is on track to reach an all-time high by year’s end,” AIA Chief Economist, Kermit Baker, Hon. AIA, PhD, said. “The office and retail sectors are expected to lead the commercial real estate market in 2016 with near double-digit increases in construction spending expected.”
“We expect the residential construction sector to continue its gradual recovery as we head into 2016,” NAHB Chief Economist David Crowe said. “Steady employment and economic growth, along with attractive mortgage rates and home prices will keep the sector on an upward trajectory as we go forward, however persistent headwinds including labor and lot shortages will continue to hinder a more robust recovery.”
Each economist discussed leading, present and future indicators for sector performance, including ABC’s Construction Backlog Indicator (CBI) and Construction Confidence Index (CCI), AIA’s Architecture Billings Index (ABI) and Consensus Construction Forecast and the NAHB/Wells Fargo Housing Market Index (HMI).
An archived version of today’s web conference is available here.
Related Stories
| Dec 18, 2019
Reconsidering construction robotics
After decades when experts predicted that robots would become more prevalent on construction sites, it would appear that the industry has finally reached that point where necessity, aspiration, and investment are colliding.
75 Top Building Products | Dec 16, 2019
Top Window and Door Products for 2019
Pella’s Rolscreen retractable screen and NanaWall’s HSW single-track sliding glass wall are among the 16 window and door products to make Building Design+Construction’s 2019 101 Top Products report.
75 Top Building Products | Dec 16, 2019
Top Structural Products for 2019
Inpro’s Fireline 140 fire barrier and Owens Corning’s Foamglas cellular glass insulation are among the 10 structural products to make Building Design+Construction's 2019 101 Top Products report.
75 Top Building Products | Dec 16, 2019
101 Top Products for 2019
Building Design+Construction readers and editors select their top building products for the past 12 months in the fourth-annual 101 Top Products report.
75 Top Building Products | Dec 16, 2019
Top Plumbing Products for 2019
Sloan's CX Flushometer and Zip Water's HydroTap are among the eight plumbing products to make Building Design+Construction's 2019 101 Top Products report.
75 Top Building Products | Dec 16, 2019
Top Interior Building Products for 2019
Arktura's Delta Drop ceiling and CertainTeed's Decoustics Rondolo wood panels are among the 13 new interior products to make Building Design+Construction's 2019 101 Top Products report.
75 Top Building Products | Dec 16, 2019
Top Glass and Glazing Products for 2019
SageGlass's Harmony dynamic glass and Vitro Architectural Glass's Acuity low-iron glass are among the nine new glass and glazing products to make Building Design+Construction's 2019 101 Top Products report.
75 Top Building Products | Dec 16, 2019
Top Flooring Products for 2019
Tarkett’s aviation-inspired flooring collection and J+J Flooring’s textile composite flooring are among the four new commercial flooring products to make Building Design+Construction’s 2019 101 Top Products report.
75 Top Building Products | Dec 16, 2019
Top Building Systems Products for 2019
FabricAir’s ceiling-hung fabric duct and Ellumi Lighting’s bacteria-killing lights are among the 13 new building systems products to make Building Design+Construction's 2019 101 Top Products report.
75 Top Building Products | Dec 12, 2019
Top Building Envelope Products for 2019
Sto's beetle-inspired exterior coating and Dörken Systems' UV-resistant vapor-permeable barrier are among the 28 new building envelope products to make Building Design+Construction's 2019 101 Top Products report.