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
| Sep 5, 2012
Pagano joins Thornton Tomasetti as Vice President in Newark office
Pagano is a Certified Energy Planner and Certified Energy Manager through the Association of Energy Engineers.
| Aug 30, 2012
John S Clark Co. completes teaching lab at UNC Wilmington
Three-story building provides offices, classrooms, and labs.
| Aug 29, 2012
BOND completes South Cove Community Health Center
$11 million, 21,000 square foot community health center opens in Quincy, Mass.
| Aug 29, 2012
Mamayek joins HDR as Design Principal in Boston
He will work closely with the Executive Committee and business group leaders to expand and promote HDR’s Design Excellence initiatives in the Northeast region.
| Aug 28, 2012
McCarthy begins construction on transportation center at Bob Hope Airport
Designed to meet LEED silver certification standards, the facility will feature unique, above ground base isolators that will resist a maximum credible earthquake.
| Aug 28, 2012
Wisnewski Blair & Associates changes name to HGA Mid-Atlantic
New name reflects firm's growing design resources on East Coast.
| Aug 24, 2012
Meis heads to Woods Bagot Sport
Staples Center, Paul Brown Stadium architect to leverage global studio to serve clients worldwide.
| Aug 21, 2012
Under 40 Leadership Summit slated for October 3-5 in Chicago
Attendees will be given an exclusive technical tour of Wrigley Field, led by Steven J. Jacobsen, CDP, who has been retained by the Chicago Cubs to create the business plan and high-level concepts to evaluate the feasibility of various renovation options for this iconic sports venue; and Carl Rice, Cubs’ Vice President, Baseball Operations.
| Aug 21, 2012
Hong Kong’s first LEED Platinum pre-certified building opens
Environmentally-sensitive features have been incorporated, including reduced operational CO2 emissions, and providing occupiers with more choice in creating a suitable working environment.