RALEIGH, N.C., (April 5, 2013) – FMI, the largest provider of management consulting and investment banking services* to the engineering and construction industry released today its Q1-2013 Construction Outlook. Although the strength of individual markets is shifting, the forecast for total construction-put-in-place for 2013 continues to show an increase of 8% over 2012 levels. The $918,897 million estimate is a solid improvement, but FMI does not expect to return to the days of annual construction above the trillion-dollar mark until 2015.
The star of the show is residential buildings with a 23% rise in single-family buildings. While much of business sector is still in wait-and-see mode, some industries are breaking the mold and planning for growth. Commercial, lodging and office construction are starting to pick up.
The rich shale regions of the country are seeing a lot of construction activity. With oil and gas exploration booming, these regions are in need of housing, as well as the construction of roads, rail and pipelines to move the product from the fields to refining and distribution sites.
In addition, the potential for greater energy independence and lower energy prices is helping to make the U.S. more competitive in the global market and enticing more manufacturing to relocate in the U.S.
Residential Construction — Single-family housing put in place grew 19% in 2012, and FMI expects another 23% growth to reach $161 billion by the end of 2013. Multifamily construction improved a whopping 47% in 2012, with FMI looking for another 31% in 2013.
Nonresidential Construction Trends and Forecasts by Sector:
Lodging — After three years of steep declines, the market for lodging construction came back a strong 25% in 2012 and FMI expects another 10% growth in construction put in place for 2013.
Office — Office construction is finally showing a solid but slow turnaround with 5% growth in 2012 and another 5% increase expected in 2013.
Commercial — Commercial construction is the third largest nonresidential construction market behind education construction and manufacturing construction. That is why it is good to see that it continues into its third year of good growth, moving up 8% in 2012 and looking for another 7% to reach $50.3 billion in 2013.
Health care — Health care construction was moderate in 2012, growing only 3%, but FMI expects it to pick up in 2013 to 8% to $44.2 billion construction put in place for the year.
Manufacturing — Manufacturing construction increased 17% in 2012. It will continue with another 6% increase for 2013 through 2014.
Power-related — Construction for the power market grew 9% in 2012 and will continue to grow between 8% and 9% through 2017.
Related Stories
Museums | Jul 29, 2019
A new museum debuts inside the Empire State Building
A $165 million, 10,000-sf museum opened on the second floor of the Empire State Building in New York City, completing the second of a four-phase “reimagining” of that building’s observatory experience, which draws four million visitors annually.
Multifamily Housing | Jul 23, 2019
Is prefab in your future?
The most important benefit of offsite construction, when done right, is reliability.
Healthcare Facilities | Jul 15, 2019
Can a kids’ healthcare space teach, entertain, and heal?
Standard building requirements don’t have to be boring. Here’s how you can inject whimsical touches into everyday design features.
Architects | Jul 10, 2019
9 picks from NeoCon 2019
Interior architect Mary Bartlett selects her favorite products and systems from the 2019 NeoCon show, Chicago, June 10-12, 2019.
BD+C University Course | Jul 8, 2019
Shadow box design: To vent or not to vent [AIA course]
A curtain wall shadow box is a spandrel assembly consisting of vision glass at the building exterior and an opaque infill at the interior side of the curtain wall system. This course is worth 1.0 AIA LU/HSW.
Architects | Jul 8, 2019
Unity Temple, Robie House among eight Frank Lloyd Wright projects to receive World Heritage status
The UNESCO designation includes signature works designed by Wright during the first half of the 20th century.
Architects | Jul 1, 2019
Perkins Eastman Co-founder Mary-Jean Eastman to keynote Women in Design+Construction Conference
Two of Perkins Eastman’s firm leaders—Mary-Jean Eastman, FAIA, Vice Chair and Managing Principal of its New York City studio, and Barbara Mullenex, AIA, Managing Principal of the Washington, D.C., studio—will share anecdotes about their personal journeys to the top of a global architecture, design, and planning firm, at Building Design+Construction's fourth annual Women in Design+Construction Conference. The event will take place November 11-13, 2019, at the Fairmont Scottsdale Princess resort in Scottsdale, Ariz.
Sports and Recreational Facilities | Jun 27, 2019
Foster + Partners unveils design of wooden boathouse for Row New York
The project will sit on the banks of the Harlem River in Sherman Creek Park.
Building Tech | Jun 26, 2019
Modular construction can deliver projects 50% faster
Modular construction can deliver projects 20% to 50% faster than traditional methods and drastically reshape how buildings are delivered, according to a new report from McKinsey & Co.
Architects | Jun 24, 2019
Clayco combines architecture and design assets into one business unit
Lamar Johnson Collaborative adds BatesForum.