Associated Builders and Contractors (ABC) forecasts a steady and ongoing economic recovery for the U.S. commercial and industrial construction industries in 2015. The reasonably brisk industry recovery in 2014 should continue in 2015, with momentum especially growing in segments closely related to the current American energy and industrial production resurgence.
"ABC forecasts nonresidential construction spending will expand by roughly 7.5% next year," said ABC Chief Economist Anirban Basu. "The segments that will experience the largest growth in construction spending in 2015 include power (e.g. natural gas-related construction), lodging (leisure and business spending), office space (professional services employment creation) and manufacturing (rebounding industrial production).
"The public sector will see far more sluggish growth in construction spending," Basu warned. "However, this fits a multi-year pattern with private nonresidential spending exceeding public nonresidential spending by 28% in 2014, up from 15.6 percent in 2013.
"There are always issues, of course, including compensation costs that will rise more quickly per worker next year than in years past," Basu cautioned. "This will be particularly apparent in areas like Louisiana and Northern California, places that have experienced significant economic growth recently. Additionally, while material price inflation has been suppressed, it may accelerate in 2015. Last year, prices were suppressed due to a combination of factors, such as softer growth in most of Europe and Asia, rising energy production here in the U.S., and a stronger dollar. Some of these factors might not be as prominent next year, so the stage could be set for price increases close to 3 percent.
"Taking into account current economic momentum, especially in the form of employment growth, ongoing accommodative monetary policy and increased growth in consumer spending, further stoked by falling gasoline prices, 2015 should be a decent one for the U.S. economy," said Basu. "Contractors should continue to experience a lengthening backlog and the industry should continue to see increases in nonresidential construction spending and employment growth."
Related Stories
| Jun 11, 2018
Accelerate Live! talk: ‘AEC can has Blockchains?’
In this 15-minute talk at BD+C’s Accelerate Live! conference (May 10, 2018, Chicago), HOK’s Greg Schleusner explores how the AEC industry could adapt the best ideas from other industries (banking, manufacturing, tech) to modernize inefficient design and construction processes.
| Jun 11, 2018
Accelerate Live! talk: How advanced digital fabrication techniques are driving design innovation
In this 15-minute talk at BD+C’s Accelerate Live! conference (May 10, 2018, Chicago), SOM’s Lucas Tryggestad and Kyle Vansice present the firm’s 3D-printed building project and explore how digital fabrication is pushing design innovation.
| Jun 11, 2018
Accelerate Live! talk: AEC + Data + AI — Poison for some, elixir for others
In this 15-minute talk at BD+C’s Accelerate Live! conference (May 10, 2018, Chicago), predictive analytics expert David Morgareidge offers steps that AE firms can take today if they want to survive AECO digital transformation.
Education Facilities | Jun 8, 2018
Data is driving design for education
In gathering this constant flow of data and recognizing the shifting trends, how can educational institutions make informed choices and smart design decisions that lead to higher efficiency and improved control over capital budgets?
Architects | Jun 6, 2018
Chief of Staff of the Army honors SmithGroupJJR’s Philip Tobey with Outstanding Civilian Service Award
Tobey began his career as a captain and military architect at Headquarters, U.S. Air Force Office of the Surgeon General, with review responsibility for medical projects worldwide.
Architects | Jun 6, 2018
A modest boost in licensed architects in 2017
NCARB’s annual survey shows California and New York leading the pack.
Healthcare Facilities | Jun 6, 2018
French 'Alzheimer’s Village' designed to resemble a medieval bastide
The new facility will provide research on a new way of treating Alzheimer’s patients.
Architects | Jun 5, 2018
Michael Green Architecture joins Katerra
Michael green architecture is a globally recognized leader in mass timber architecture.
Architects | Jun 4, 2018
Changing the way we think about water and design
We have several gaps between the need and desire to have abundant, accessible, clean water and the reality of dealing with on-going and increasing water shortage crises.
Libraries | Jun 1, 2018
New library offers a one-stop shop for what society is craving: hands-on learning
Beyond lending books and DVDs, the Elkridge (Md.) branch library loans household tools like ladders, wheelbarrows, and sewing machines.