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
| Feb 17, 2014
SmithGroupJJR President and CEO Carl Roehling appointed to serve on the AIA/AGC Joint Committee
Carl Roehling, FAIA, LEED AP BD+C, president & CEO of SmithGroupJJR, has been appointed to serve on the Joint Committee of The American Institute of Architects (AIA) and The Associated General Contractors of America (AGC).
| Feb 17, 2014
Developer plans to 'crowdfund' extended stay hotel in Manhattan
Want to own a piece of Manhattan hotel real estate? Developer Rodrigo Nino is inviting individual investors to put up $100,000 each for his latest project, 17 John.
| Feb 17, 2014
Call for Entries: 17th annual Building Team Awards - Deadline Extended!
BD+C's Building Team Awards is the industry's only recognition program to honor projects that achieve excellence in both design/construction and collaboration of the AEC/O team. The deadline has been extended to March 14, 2014.
| Feb 17, 2014
GBI to Offer AIA Approved Course Free for 60 Days to Train New Green Globes Professionals
The Green Building Initiative™ (GBI) announced today that between Feb. 13 and April 15 it will provide free access to its online certification course for Green Globes Professionals™ (GGPs). GGPs help guide building projects in achieving Green Globes® ratings, awarded for environmentally-focused design and construction.
| Feb 14, 2014
ASHRAE, Green Grid team up on energy-efficiency guide for data centers
Vendor-neutral publication examines aspects of the popular power usage effectiveness (PUE) metric.
| Feb 14, 2014
Scrap tires used to boost masonry blocks at Missouri University of S&T
Research could lead to blocks that use waste material and have seismic and insulating benefits.
| Feb 14, 2014
Giant interactive pinwheel adds fun to museum exterior
The proposed design for the Santa Cruz Museum of Art and History features a 10-foot pinwheel that can be activated by passersby.
| Feb 14, 2014
First look: Kentucky's Rupp Arena to get re-clad as part of $310M makeover
Rupp Arena will get a 40-foot high glass façade and a new concourse, but will retain many of its iconic design elements.
| Feb 14, 2014
Must see: Developer stacks shipping containers atop grain silos to create student housing tower
Mill Junction will house up to 370 students and is supported by 50-year-old grain silos.
| Feb 14, 2014
The Technology Report 2014: Top tech tools and trends for AEC professionals
In this special five-part report, Building Design+Construction explores how Building Teams throughout the world are utilizing advanced robotics, 3D printers, drones, data-driven design, and breakthroughs in building information modeling to gain efficiencies and create better buildings.