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
Architects | Mar 9, 2018
Designing healthier buildings: Fitwel certification system
The Fitwel certification system is relatively simple and involves registering a building on a custom scorecard.
Architects | Mar 7, 2018
Balkrishna Doshi named 2018 Pritzker Laureate
Over the course of 70 years, Doshi was instrumental in shaping the discourse of architecture throughout India, from low-cost housing for thousands to landmark projects like the Indian Institute of Management.
Architects | Mar 7, 2018
New National Building Museum exhibit explores the architecture of the Manhattan Project
The exhibit will run through March 3, 2019.
Architects | Feb 27, 2018
But first, let me take a selfie: Designing sharable moments
The concept of “selfie walls” has been around for years, but with their growing popularity they have begun to evolve and take on a life of their own.
Market Data | Feb 27, 2018
AIA small firm report: Half of employees have ownership stake in their firm
The American Institute of Architects has released its first-ever Small Firm Compensation Report.
Museums | Feb 26, 2018
*UPDATED* Design team unveils plans for the renovated and expanded Gateway Arch Museum
The goal of the project is to create closer and more robust connections between the Gateway Arch Museum and the landscape of the Jefferson National Expansion Memorial.
Architects | Feb 23, 2018
AIA elevates 152 members and two international architects to the College of Fellows
AIA Fellowship recognizes significant contributions to profession of architecture and society.
Airports | Feb 21, 2018
Terminal Modernization: Why Bother? Part II
This is the second post in our series examining why airport operators should bother to upgrade their facilities, even if capacity isn’t forcing the issue.
Urban Planning | Feb 21, 2018
Leading communities in the Second Machine Age
What exactly is the Second Machine Age? The name refers to a book by MIT researchers Erik Brynjolfsson and Andrew McAfee.
Retail Centers | Feb 20, 2018
Is there a future in retail banking? Part II
It is critical to not view the physical branch as just another sales channel, but as an important touchpoint along a customer’s journey.