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
| Nov 8, 2013
Can Big Data help building owners slash op-ex budgets?
Real estate services giant Jones Lang LaSalle set out to answer these questions when it partnered with Pacific Controls to develop IntelliCommand, a 24/7 real-time remote monitoring and control service for its commercial real estate owner clients.
| Nov 8, 2013
S+T buildings embrace 'no excuses' approach to green labs
Some science-design experts once believed high levels of sustainability would be possible only for low-intensity labs in temperate zones. But recent projects prove otherwise.
| Nov 8, 2013
Net-zero bellwether demonstrates extreme green, multifamily style
The 10-unit zHome in Issaquah Highlands, Wash., is the nation’s first net-zero multifamily project, as certified this year by the International Living Future Institute.
| Nov 8, 2013
Walkable solar pavement debuts at George Washington University
George Washington University worked with supplier Onyx Solar to design and install 100 sf of walkable solar pavement at its Virginia Science and Technology Campus in Ashburn, Va.
| Nov 6, 2013
PECI tests New Buildings Institute’s plug load energy use metrics at HQ
Earlier this year, PECI used the NBI metrics to assess plug load energy use at PECI headquarters in downtown Portland, Ore. The study, which informed an energy-saving campaign, resulted in an 18 percent kWh reduction of PECI’s plug load.
| Nov 5, 2013
Net-zero movement gaining traction in U.S. schools market
As more net-zero energy schools come online, school officials are asking: Is NZE a more logical approach for school districts than holistic green buildings?
| Nov 5, 2013
New IECC provision tightens historic building exemption
The International Energy Conservation Code has been revised to eliminate what has been seen as a blanket exemption for historic buildings.
| Nov 5, 2013
Living Building Challenge clarifies net-zero definitions and standards
The Living Building Challenge has released the Net Zero Energy Building Certification to provide clearer definitions regarding what net zero really means and how it is to be achieved.
| Nov 5, 2013
Oakland University’s Human Health Building first LEED Platinum university building in Michigan [slideshow]
Built on the former site of a parking lot and an untended natural wetland, the 160,260-sf, five-story, terra cotta-clad building features some of the industry’s most innovative, energy-efficient building systems and advanced sustainable design features.
| Nov 4, 2013
Architecture and engineering industry outlook remains positive on all major indicators
While still below pre-recession levels, all of the key indicators in the latest Quarterly Market Forecast (QMF) report from PSMJ Resources remain in positive territory.