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An archived version of today’s web conference is available here.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
Giants 400 | Nov 2, 2017
Top 80 industrial construction firms
Walbridge, Jacobs, and Fluor top BD+C’s ranking of the nation’s largest industrial sector contractors and construction management firms, as reported in the 2017 Giants 300 Report.
Giants 400 | Oct 30, 2017
Top 85 green construction firms
Turner Construction Co., Clark Group, and AECOM top BD+C’s ranking of the nation’s largest green sector contractors and construction management firms, as reported in the 2017 Giants 300 Report.
Multifamily Housing | Oct 29, 2017
Multifamily visionaries: The Beach Company’s family ties
Spanning four generations, The Beach Company continues to expand its development footprint across the Southeast.
Sports and Recreational Facilities | Oct 23, 2017
Top 50 sports construction firms
AECOM, Mortenson Construction, and Turner Construction Co. top BD+C’s ranking of the nation’s largest sports sector contractors and construction management firms, as reported in the 2017 Giants 300 Report.
Giants 400 | Oct 19, 2017
Race for talent drives office designs
Is the shift toward attracting younger workers too much or not enough?
Giants 400 | Oct 16, 2017
Data center market forecast: Clearly cloudy
Look for mission-critical construction to double in the next few years.
Data Centers | Oct 13, 2017
Top 35 data center construction firms
Turner Construction Co., Holder Construction, and DPR Constrcution top BD+C’s ranking of the nation’s largest data center sector contractors and construction management firms, as reported in the 2017 Giants 300 Report.
Giants 400 | Oct 9, 2017
Top 80 K-12 construction firms
Gilbane Building Co., Balfour Beatty US, and Skanska USA top BD+C’s ranking of the nation’s largest K-12 sector contractors and construction management firms, as reported in the 2017 Giants 300 Report.
AEC Tech | Oct 6, 2017
How professional bias can sabotage industry transformation
Professional bias can take the form of change-resistant thinking that can keep transformational or innovative ambitions at bay. Tech consultant Nate Miller presents three kinds of bias that often emerge when a professional is confronted with new technology.
Giants 400 | Oct 5, 2017
On wings of gold: Alternative financing schemes are propelling the high-flyin’ air terminals sector
The $4 billion renovation of New York City’s LaGuardia Airport is the first major U.S. aviation project delivered using a public-private partnership (P3) model.