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An archived version of today’s web conference is available here.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
| Apr 24, 2013
Los Angeles may add cool roofs to its building code
Los Angeles Mayor Antonio Villaraigosa wants cool roofs added to the city’s building code. He is also asking the Department of Water and Power (LADWP) to create incentives that make it financially attractive for homeowners to install cool roofs.
| Apr 23, 2013
Building material innovation: Concrete cloth simplifies difficult pours
Milliken recently debuted a flexible fabric that allows for concrete installations on slopes, in water, and in other hard to reach places—without the need for molds or mixing.
| Apr 22, 2013
Top 10 green building projects for 2013 [slideshow]
The AIA's Committee on the Environment selected its top ten examples of sustainable architecture and green design solutions that protect and enhance the environment.
| Apr 19, 2013
DPR Construction acquires Hardin Construction
DPR Construction has purchased Atlanta-based Hardin Construction Company. The companies are combining operations in the Southeast and Texas markets, including Atlanta, Austin, Texas, Houston, and Raleigh, N.C.
| Apr 19, 2013
Must see: Shell of gutted church on stilts, 40 feet off the ground
Construction crews are going to extremes to save the ornate brick façade of the Provo (Utah) Tabernacle temple, which was ravaged by a fire in December 2010.
| Apr 18, 2013
Survey seeks info from managers of high-tech facilities
The International Institute for Sustainable Laboratories (I2SL), and Laney College in Oakland California, a National Science Foundation-funded Building Efficiency for a Sustainable Tomorrow (BEST) Center, are collaborating to identify education and training needs and strategies for high-tech facility operators.
| Apr 18, 2013
SOM, CASE team up to launch crowd-sourced apps library
SOM and CASE have formally launched AEC-APPS, the first crowd-sourced, web-based library for applications used by architects, engineers and construction professionals. This is a one-of-a-kind initiative in the AEC Industry and is a non-profit online community that allows digital tool users and toolmakers to share ideas, tips and resources.
| Apr 17, 2013
Frank Lloyd Wright's Park Avenue showroom demolished
New York loses another architectural gem by Frank Lloyd Wright as new owner razes auto showroom.
| Apr 17, 2013
First look: Renzo Piano's glass-domed motion pictures museum
The Academy of Motion Picture Arts and Sciences last week released preliminary plans for its $300 million Academy of Motion Picture Arts and Sciences museum in Los Angeles, designed by Renzo Piano and local architect Zoltan Pali.
| Apr 16, 2013
Dempsey Construction acquires Legacy Building Services Inc.
Dempsey Construction Inc., San Diego, has acquired Legacy Building Services Inc., a general contractor also from San Diego. The acquisition creates a diversified organization that will serve the commercial development, biotech/laboratory, multifamily, retail, education, historic renovation, theme park and health care sectors.