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
| May 7, 2013
First look: Golden State Warriors stadium by Snøhetta, AECOM
Architects Snøhetta and AECOM have revealed their latest renderings of a new stadium for NBA basketball team the Golden State Warriors on the waterfront in San Francisco.
| May 7, 2013
Renovated bridge building will anchor Nashville riverfront master plan
Renovations to the former Nashville Bridge Company building were recently completed, including a newly-built modern wing. The facility has been re-dubbed The Bridge Building and now offers spaces for meetings, parties, weddings, and other events.
| May 7, 2013
First look: Adrian Smith + Gordon Gill skyscraper designed to 'confuse the wind'
The 400-meter-high, 116-story Imperial Tower in Mumbai will feature a slender, rounded form optimized to withstand the area's strong wind currents.
| May 6, 2013
SAFTI FIRST announces 3D Autodesk Revit models for fire rated wall, window, and door systems
SAFTI FIRST, leading USA-manufacturer of fire rated glass and faming systems, is proud to announce that Autodesk Revit models are now available for its fire rated walls, window and door systems via www.safti.com and Autodesk Seek.
| May 6, 2013
7 major multifamily residential projects in the works
A $140 million redevelopment of a landmark, 45-building apartment complex in Los Angeles is among the nation's significant multifamily developments under way.
| May 3, 2013
5 common failures in paints and coatings
As experienced designers, contractors, and owners know, most paint and coating problems are correctable, but some are especially stubborn to address. Here is a partial compendium of typical failure modes and methods for addressing the problem.
| May 3, 2013
'LEED for all GSA buildings,' says GSA Green Building Advisory Committee
The Green Building Advisory Committee established by the General Services Administration, officially recommended to GSA that the LEED green building certification system be used for all GSA buildings as the best measure of building efficiency.
| May 3, 2013
SMPS Foundation accepting applications for Ron Garikes Student Scholarship
The SMPS Foundation is now accepting scholarship applications from eligible students majoring in marketing, communications, or public relations who are planning a career in professional services marketing in the architecture, engineering, and construction industry.