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An archived version of today’s web conference is available here.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
Contractors | Apr 9, 2018
Tech Report 5.0: Smart(er) Jobsites
Real-time construction analysis, just-in-time materials delivery, digital production planning systems—these are just a few of the novel approaches construction firms are implementing to take control of their jobsites.
Market Data | Apr 2, 2018
Construction spending in February inches up from January
Association officials urge federal, state and local officials to work quickly to put recently enacted funding increases to work to improve aging and over-burdened infrastructure, offset public-sector spending drops.
Contractors | Mar 27, 2018
Shawmut Design and Construction’s burgeoning L.A. office looks to hospitality and interiors for future growth
A new division also taps the luxury homes market.
Contractors | Mar 9, 2018
Undoing 5 myths of IPD and Lean construction
The Lean Construction Institute, one of this year’s Movers+Shapers, has been sponsoring valuable research recently.
Contractors | Mar 6, 2018
Skender revolutionizes how the industry builds, integrates design, construction, and manufacturing
Envisioning a radically more efficient future for the building industry, Skender announces its expansion beyond construction, becoming a vertically integrated company including construction, design and building component manufacturing functions. The expansion includes significant investment in the launch of a new Chicago-based advanced manufacturing subsidiary and the acquisition of the boutique design firm Ingenious Architecture.
Multifamily Housing | Mar 4, 2018
Katerra, a tech-driven GC, plots ambitious expansion
Investors flock to this vertically integrated startup, which automates its design and construction processes.
Office Buildings | Feb 13, 2018
Office market vacancy rate at 10-year low
Cautious development and healthy absorption across major markets contributed to the decline in vacancy, according to a new Transwestern report.
Contractors | Feb 2, 2018
Construction employers add 36,000 jobs in January and 226,000 over the year
Industry employment is most since August 2008 As unemployment rate falls sharply.
Healthcare Facilities | Feb 1, 2018
Early supplier engagement provides exceptional project outcomes
Efficient supply chains enable companies to be more competitive in the marketplace.
Industry Research | Jan 30, 2018
AIA’s Kermit Baker: Five signs of an impending upturn in construction spending
Tax reform implications and rebuilding from natural disasters are among the reasons AIA’s Chief Economist is optimistic for 2018 and 2019.
