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An archived version of today’s web conference is available here.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
| Aug 15, 2016
Top 60 Sports Facility Construction Firms
Mortenson Construction, AECOM, and Turner Construction Co. top Building Design+Construction’s annual ranking of the nation’s largest sports facility sector construction and construction management firms, as reported in the 2016 Giants 300 Report.
| Aug 15, 2016
MILITARY GIANTS: Cross-laminated timber construction gets a salute from the Army
By privatizing the construction, renovation, operation, maintenance, and ownership of its hotels the Army expects to cut a 20-year timetable for repairs and replacement of its lodging down to eight years.
| Aug 12, 2016
SCIENCE + TECHNOLOGY GIANTS: Incubator model is reimagining research and lab design
Interdisciplinary interaction is a common theme among many new science and technology offices.
| Aug 12, 2016
Top 30 Science + Technology Construction Firms
Skanska USA, Suffolk Construction Co., and The Whiting-Turner Contracting Co. top Building Design+Construction’s annual ranking of the nation’s largest science + technology sector construction and construction management firms, as reported in the 2016 Giants 300 Report.
| Aug 12, 2016
OFFICE GIANTS: Technology is giving office workers the chance to play musical chairs
Technology is redefining how offices function and is particularly salient in the growing trend of "hoteling" and "hot seating" or "free addressing."
| Aug 12, 2016
Top 100 Office Construction Firms
Turner Construction Co., Structure Tone, and Gilbane Building Co. top Building Design+Construction’s annual ranking of the nation’s largest office sector construction and construction management firms, as reported in the 2016 Giants 300 Report.
| Aug 11, 2016
RETAIL GIANTS: Retailers and developers mix it up to stay relevant with shoppers
Retail is becoming closely aligned with entertainment, and malls that can be repositioned as lifestyle centers will have enhanced value.
| Aug 10, 2016
Top 80 Retail Construction Firms
VCC, PCL Construction Enterprises, and The Whiting-Turner Contracting Co. top Building Design+Construction’s annual ranking of the nation’s largest retail sector construction and construction management firms, as reported in the 2016 Giants 300 Report.
| Aug 10, 2016
DATA CENTER GIANTS: Information overload is pushing the limits of mission-critical facilities
Streamlined design and delivery approaches for individual business enterprises and co-location facilities are being born out of the necessity to bring new capacity online as quickly as possible.
Data Centers | Aug 10, 2016
Top 40 Data Center Construction Firms
The Whiting-Turner Contracting Co., Holder Construction Co., and DPR Construction top Building Design+Construction’s annual ranking of the nation’s largest data center sector construction and construction management firms, as reported in the 2016 Giants 300 Report.