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
Giants 400 | Oct 5, 2017
On wings of gold: Alternative financing schemes are propelling the high-flyin’ air terminals sector
The $4 billion renovation of New York City’s LaGuardia Airport is the first major U.S. aviation project delivered using a public-private partnership (P3) model.
Giants 400 | Oct 4, 2017
Top 40 airport construction firms
Hensel Phelps, Turner Construction Co., and Skanska USA top BD+C’s ranking of the nation’s largest airport sector contractors and construction management firms, as reported in the 2017 Giants 300 Report.
Giants 400 | Oct 3, 2017
Top 30 airport architecture firms
Jacobs, Corgan, and Gensler top BD+C’s ranking of the nation’s largest airport sector architecture and AE firms, as reported in the 2017 Giants 300 Report.
Multifamily Housing | Sep 27, 2017
Pickleball, anyone?
Two-and-a-half million Americans are playing the game with the funny name.
Architects | Sep 25, 2017
Blending past, present, and future at a research center
The four-part mission of a garden of scientific research helped drive the design for the Beijing New Material Research & Development Center.
Architects | Sep 22, 2017
Design giants merge: FKP joins CannonDesign
The deal strengthens CannonDesign’s pediatric healthcare expertise, establishes presence in Texas and Ohio.
40 Under 40 | Sep 22, 2017
Meet the 40 Under 40 Class of 2017
These AEC stars are making their mark in business, philanthropy, and in their communities.
40 Under 40 | Sep 21, 2017
Meet the 40 Under 40 Class of 2017
These AEC stars are making their mark in business, philanthropy, and in their communities.
Office Buildings | Sep 20, 2017
Five Stantec offices move into one Fifth Avenue location
The new location provides the firm with 40,000 sf of space.
Architects | Sep 19, 2017
What we talk about when we talk about placemaking
What does Good Growth mean and how do we set about achieving it?