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
Projects | Apr 17, 2017
BD+C's 2017 Design Innovation Report
Façades that would make Dr. Seuss smile, living walls, and exterior wall space that doubles as gallery space are all represented in this year's BD+C Design Innovation Report.
Healthcare Facilities | Apr 13, 2017
The rise of human performance facilities
A new medical facility in Chicago focuses on sustaining its customers’ human performance.
Laboratories | Apr 13, 2017
How to design transformative scientific spaces? Put people first
While most labs are designed to achieve that basic functionality, a transformational lab environment prioritizes a science organization’s most valuable assets: its people.
Hotel Facilities | Apr 12, 2017
Hotels embrace place
Today’s hospitality environments emphasize unique, localized experiences to attract and engage guests.
Green | Apr 11, 2017
Passivhaus for high-rises? Research demonstrates viability of the stringent standards for tall residential buildings
A new study conducted by FXFOWLE shows that Building Teams can meet stringent Passivhaus performance standards with minimal impact to first cost and aesthetics.
Curtain Wall | Apr 11, 2017
Masters of geometry
Three firms that specialize in façades that curve, twist, and turn see themselves as artisans of the unthinkable.
Office Buildings | Apr 10, 2017
Innovation lab makes developing eye care solutions a collaborative affair
The Shop East innovation lab presents 13,500 sf of workspace across two floors with an emphasis on collaboration.
Architects | Apr 10, 2017
New Bjarke Ingels documentary gives a peek behind the curtain
The movie takes a slightly darker tone than previous projects chronicling the starchitect’s rise to prominence.
Architects | Apr 4, 2017
Architect Howard Elkus dies at 78
Cofounder of Elkus Manfredi Architects, his career spanned five decades, and included a spectrum of major design projects.