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
| Feb 19, 2014
It's a world record! Largest uninterrupted concrete pour kicks off Wilshire Grand project
Guinness World Records verifies the concrete pour as the largest ever
| Feb 19, 2014
Why you should start with a builder, part two
When it’s time to build or expand, the first step is finding a builder that fits your needs. Once you have found a builder, checked their references, visited with their previous clients and are ready to move forward, the next step is answering an initial set of questions that will direct your project.
| Feb 19, 2014
Slight rebound for Architecture Billings Index
After consecutive months of contracting demand for design services, AIA's Architecture Billings Index inched up nearly two points to 50.4 in January, indicating favorable business conditions.
| Feb 19, 2014
Sefaira Adds Daylighting Analysis to Performance Based Design Platform
Sefaira, the leader in software for high performance building design, today announced that its performance based design platform now includes daylighting analysis. With the addition of daylighting, Sefaira combines two critical design metrics in the same tool.
| Feb 19, 2014
Harvard's 'termite robots' can build any thing, any way [video]
The robots build by observing thier environment and then obeying a set of traffic rules programmed by researchers.
| Feb 18, 2014
Illinois leads Top 10 states for LEED in annual USGBC ranking
The U.S. Green Building Council has released its ranking of the Top 10 States for LEED, the world’s most widely used and recognized green building rating system.
| Feb 18, 2014
Study: 90% of healthcare providers say Affordable Care Act is 'step forward,' but major revisions needed
Providers are excited about opportunities to address long-term health issues in the U.S., but worries about the transition persist, according to a new study by Mortenson Construction.
| Feb 17, 2014
SmithGroupJJR President and CEO Carl Roehling appointed to serve on the AIA/AGC Joint Committee
Carl Roehling, FAIA, LEED AP BD+C, president & CEO of SmithGroupJJR, has been appointed to serve on the Joint Committee of The American Institute of Architects (AIA) and The Associated General Contractors of America (AGC).
| Feb 17, 2014
Developer plans to 'crowdfund' extended stay hotel in Manhattan
Want to own a piece of Manhattan hotel real estate? Developer Rodrigo Nino is inviting individual investors to put up $100,000 each for his latest project, 17 John.
| Feb 17, 2014
Call for Entries: 17th annual Building Team Awards - Deadline Extended!
BD+C's Building Team Awards is the industry's only recognition program to honor projects that achieve excellence in both design/construction and collaboration of the AEC/O team. The deadline has been extended to March 14, 2014.