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
| Jun 12, 2013
More than 90% of New York City schools have code violations
More than 90% of New York City schools have at least one outstanding building code violation. Loose wires, stuck doors and inadequate ventilation are just some of the problems.
| Jun 12, 2013
5 building projects that put the 'team' in teamwork
The winners of the 2013 Building Team Awards show that great buildings cannot be built without the successful collaboration of the Building Team.
| Jun 12, 2013
Sacred synergy achieves goals for religious education [2013 Building Team Award winner]
A renovation/addition project at Columbia Theological Seminary unites a historic residence hall with a modern classroom facility.
| Jun 12, 2013
‘Talking’ Braille maps help the visual impaired
Talking pen technology, combined with tactile maps, allows blind people to more easily make their way around BART stations in the Bay Area.
| Jun 11, 2013
Music/dance building supports sweet harmony [2013 Building Team Award winner]
A LEED Gold project enhances a busy Chicago neighborhood, meeting ambitious criteria for acoustical design and adaptability.
| Jun 11, 2013
Vertical urban campus fills a tall order [2013 Building Team Award winner]
Roosevelt University builds a 32-story tower to satisfy students’ needs for housing, instruction, and recreation.
| Jun 11, 2013
Building a better box: High-bay lab aims for net-zero [2013 Building Team Award winner]
Building Team cooperation and expertise help Georgia Tech create a LEED Platinum building for energy science.
| Jun 11, 2013
Finnish elevator technology could facilitate supertall building design
KONE Corporation has announced a new elevator technology that could make it possible for supertall buildings to reach new heights by eliminating several problems of existing elevator technology. The firm's new UltraRope hoisting system uses a rope with a carbon-fiber core and high-friction coating, rather than conventional steel rope.
| Jun 10, 2013
Lake Washington STEM school combines modular and site-built construction to meet ambitious schedule
When the Lake Washington School District outside Seattle needed a new high school built on an ambitious permitting and construction schedule of seven months, modular construction proved to be an ideal solution.
| Jun 7, 2013
Must see: Building façade made of massive concrete drain pipes
Looking to create a unique atmosphere using natural materials for the Prahran Hotel pub near Melbourne, local architect Techné Architects cleverly incorporated a series of concrete sewer pipes into the building's main façade.
