Entering the second quarter of 2022, FMI expects construction spending to end 2022 up 7% compared to up 8% in 2021. But that growth will be offset by inflation, supply chain snarls, a shortage of workers, project delays and economic turmoil caused by international events such as the Russia-Ukraine war, according to FMI's 2022 North American Engineering and Construction Outlook Second Quarter Edition.
Key highlights of the report include:
- Strong investment in residential and manufacturing will drive industry spending through 2022.
- Due to expected increases in infrastructure funding later this year, several nonbuilding segments, including highway and street, sewage and waste disposal and water supply, are all anticipated to realize growth rates of more than 5% in 2022.
- Year-end 2022 growth will be tempered by ongoing spending declines across various nonresidential building segments, including lodging, office, educational, religious, public safety and amusement and recreation.
- Commercial, health care, communication, power and conservation and development are all expected to end the year with low growth, roughly in line with the historical rate of inflation, between 0% and 4%, and are therefore considered stable.
Download the free PDF report (short registration required).
Related Stories
Market Data | Mar 16, 2021
Construction employment in January lags pre-pandemic mark in 42 states
Canceled projects, supply-chain woes threaten future jobs.
Market Data | Mar 15, 2021
Rising materials prices and supply chain disruptions are hurting many construction firms
The same firms are already struggling to cope with pandemic impacts.
Market Data | Mar 11, 2021
Soaring materials costs, supply-chain problems, and project cancellations continue to impact construction industry
Costs and delayed deliveries of materials, parts, and supplies are vexing many contractors.
Market Data | Mar 8, 2021
Construction employment declines by 61,000 in February
Association officials urge congress and Biden administration to focus on new infrastructure funding.
Market Data | Mar 2, 2021
Construction spending rises in January as private nonresidential sector stages rare gain
Private nonresidential market shrinks 10% since January 2020 with declines in all 11 segments.
Market Data | Feb 24, 2021
2021 won’t be a growth year for construction spending, says latest JLL forecast
Predicts second-half improvement toward normalization next year.
Market Data | Feb 23, 2021
Architectural billings continue to contract in 2021
AIA’s Architecture Billings Index (ABI) score for January was 44.9 compared to 42.3 in December.
Healthcare Facilities | Feb 18, 2021
The Weekly show, Feb 18, 2021: What patients want from healthcare facilities, and Post-COVID retail trends
This week on The Weekly show, BD+C editors speak with AEC industry leaders from JLL and Landini Associates about what patients want from healthcare facilities, based on JLL's recent survey of 4,015 patients, and making online sales work for a retail sector recovery.
Market Data | Feb 17, 2021
Soaring prices and delivery delays for lumber and steel squeeze finances for construction firms already hit by pandemic
Association officials call for removing tariffs on key materials to provide immediate relief for hard-hit contractors and exploring ways to expand long-term capacity for steel, lumber and other materials,
Market Data | Feb 9, 2021
Construction Backlog and contractor optimism rise to start 2021, according to ABC member survey
Despite the monthly uptick, backlog is 0.9 months lower than in January 2020.