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
Architects | Jan 26, 2017
Alan Greenberger, FAIA, honored with the 2017 AIA Thomas Jefferson Award
The award honors significant contributions to public architecture.
Architects | Jan 24, 2017
Politicians use architectural renderings in bid to sell Chicago’s Thompson Center
The renderings are meant to show the potential of the site located in the heart of the Chicago Loop.
Architects | Jan 23, 2017
Why corporate branded environments matter
A branded environment has the potential to create a long-lasting impression for your intended audiences.
Architects | Jan 19, 2017
Harley Ellis Devereaux merges with Deems Lewis McKinley
The combination is expected to bolster HED’s presence in northern California and the K-12 sector.
Architects | Jan 13, 2017
Best in Architecture: 23 projects win AIA 2017 Institute Honor Awards
The Shigeru Ban-designed Aspen Art Museum and the General Motors Design Auditorium by SmithGroupJJR are among the architecture, interior architecture, and urban design projects to win.
Designers | Jan 13, 2017
The mind’s eye: Five thoughts on cognitive neuroscience and designing spaces
Measuring how the human mind responds to buildings could improve design.
Building Materials | Jan 9, 2017
Architects and researchers are developing new techniques for building in space
As setting foot on Mars becomes a more realistic goal, the search for how to best develop Architecture for the Red Planet is heating up.
Architects | Jan 5, 2017
U.S. architects can now earn licenses to practice Down Under
NCARB finalizes reciprocal agreement with Australia and New Zealand.
Architects | Jan 4, 2017
The making of visible experts: A path for seller-doers in the AEC industry
Exceptional seller-doers have the ability to ask the right questions, and more importantly, listen.
Building Team | Jan 3, 2017
How does your firm’s hit rate stack up to the AEC competition?
If your firm is not converting at least a third of project proposals when competing for new work, it may be time to reassess your marketing tactics and processes.