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An archived version of today’s web conference is available here.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 2, 2012
Gilbane honored for sustainability efforts in Indianapolis
Emmitt J. Bean Federal Center project team for their role in advancing sustainability in the city.
| Apr 2, 2012
Mitsubishi unveils ultra-high-speed elevator for Shanghai skyscraper
The operation of the elevator is scheduled to begin in 2014.
| Apr 2, 2012
Sachse Construction helps complete Salt Lake City’s City Creek Center
Sachse was hired to complete store build-outs at City Creek Center.
| Apr 2, 2012
Culver joins Sasaki as managing director
Culver will work closely with Sasaki firm leaders on issues of strategy, marketing, and business development.
| Apr 2, 2012
EB-5 investment funds new Miramar, Fla. business complex
Riviera Point Holdings breaks ground on $17 million office center.
| Mar 30, 2012
New windows and doors revitalize older buildings
With their improved aesthetics, energy efficiency, and durability, replacement windows and doors can add significant value to a renovation project.
| Mar 30, 2012
18 handy tablet apps for AEC professionals
Check out these helpful apps for everyday design and construction tasks. Our favorite: MagicPlan, which uses GPS to help you measure and draw a floor plan of any room.
| Mar 29, 2012
U.K.’s Manchester Airport tower constructed in nine days
Time-lapse video shows construction workers on the jobsite for 222 continuous hours.
| Mar 29, 2012
Roller shade operating system wins IF Product Design Award
Design experts in the iF jury recognized the engineering invested in the RB 500 Roller Shade, including a metal clutch with a patented construction, a durable zamac housing with polished finish, and a chain drive unit that excels in maximum operating comfort.
| Mar 29, 2012
Lehigh engineering student wins Thornton Tomasetti Foundation Awards Scholarship
The scholarship is awarded annually to a graduate student in structural engineering deemed by the department to have the potential to make an impact in the field professionally.