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An archived version of today’s web conference is available here.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
Sponsored | | Oct 7, 2013
Bridging the digital divide between the BIM haves and have nots
There's no doubt that BIM is the future of design. But for many firms, finding a bridge to access rich model data and share it with those typically left on the sidelines can be the difference between winning a bid or not.
| Oct 7, 2013
How to streamline your operations
The average U.S. office worker generates two pounds of paper each day, according to the EPA. Ninety percent of that trash is made up of printed materials: marketing reports, project drafts, copy machine mistakes, and unwanted mail. Here are a few ways AEC firms can streamline their management processes.
| Oct 7, 2013
Reimagining the metal shipping container
With origins tracing back to the mid-1950s, the modern metal shipping container continues to serve as a secure, practical vessel for transporting valuable materials. However, these reusable steel boxes have recently garnered considerable attention from architects and constructors as attractive building materials.
| Oct 4, 2013
Sydney to get world's tallest 'living' façade
The One Central Park Tower development consists of two, 380-foot-tall towers covered in a series of living walls and vertical gardens that will extend the full height of the buildings.
| Oct 4, 2013
Nifty video shows planned development of La Sagrada Familia basilica
After 144 years, construction on Gaudi's iconic Barcelona edifice is picking up speed, with a projected end date of 2026.
| Oct 4, 2013
Mack Urban, AECOM acquire six acres for development in LA's South Park district
Mack Urban and AECOM Capital, the investment fund of AECOM Technology Corporation (NYSE: ACM), have acquired six acres of land in downtown Los Angeles’ South Park district located in the central business district (CBD).
| Oct 4, 2013
CRB opens Atlanta office
Georgia’s status as a burgeoning hub for the life sciences industry has fueled CRB’s decision to open an office in Atlanta to better serve its clients in the market. CRB is a leading provider of engineering, design and construction services for customers in the biotech, pharmaceutical and life sciences industries.
| Sep 27, 2013
NYC releases first year-to-year energy performance data on commercial properties
A new report provides information on energy performance of New York City's largest buildings (mostly commercial, multi-family residential). It provides an analysis of 2011 data from city-required energy “benchmarking”—or the tracking and comparison of energy performance—in more than 24,000 buildings that are over 50,000 square feet.
| Sep 27, 2013
ASHRAE/IES publish first standard focused on commissioning process
ANSI/ASHRAE/IES Standard 202, Commissioning Process for Buildings and Systems, identifies the minimum acceptable commissioning process for buildings and systems as described in ASHRAE’s Guideline 0-2005, The Commissioning Process. Standard 202 is ASHRAE’s first standard focused on the commissioning process.
| Sep 26, 2013
6 ways to maximize home-field advantage in sports venue design
Home-field advantage can play a significant role in game outcomes. Here are ways AEC firms can help create the conditions that draw big crowds, energize the home team to perform better, and disrupt visiting players.