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
| Jul 16, 2012
Business school goes for maximum vision, transparency, and safety with fire rated glass
Architects were able to create a 2-hour exit enclosure/stairwell that provided vision and maximum fire safety using fire rated glazing that seamlessly matched the look of other non-rated glazing systems.
| Jul 12, 2012
New firm RSK Avanti Partners offers market development services
Full-service consulting firm is focused on working with product manufacturers, designers, specifies and contractors in the building construction market.
| Jul 12, 2012
Chicago Public Schools names Lend Lease team as construction manager
Under this Capital Improvement Program, the Lend Lease team will be responsible for renovation and life safety work at over 100 Chicago Public Schools across the City.
| Jul 12, 2012
Cramer joins Gilbane’s NYC Business Development Team
New Business Development Manager brings over 30 years of experience to Gilbane.
| Jul 12, 2012
Cardoso joins Margulies Perruzzi Architects
Senior architect brings experience, leadership to firm’s healthcare practice.
| Jul 12, 2012
EE&K and Knutson Construction selected for the Interchange in Minneapolis
Design-build contract for $79.3 million transportation hub will connect transit with culture.
| Jul 11, 2012
New BDC University course: Design Criteria for Ceramic Tile/Stone Installations
Everyone that successfully completed to course will receive 1.0 HSW/LU AIA LU.
| Jul 11, 2012
Perkins+Will designs new home for Gateway Community College
Largest one-time funded Connecticut state project and first designed to be LEED Gold.
| Jul 11, 2012
HOK honored with Los Angeles architectural award
42nd annual awards from the Los Angeles Business Council honor design excellence.
| Jul 11, 2012
Skanska relocates its Philadelphia metro office
Construction firm’s new 19,100-sf office targets LEED Gold certification.