FMI released the first-quarter 2012 Construction Outlook Report forecasting a 5% increase in total construction put in place for 2012 compared to 2011, or $826.3 billion. The last time construction put in place was at this level was 2000-2001.
Despite slow growth projections and rising gasoline prices, the GDP is still growing and consumers are still spending, reflected in the Conference Board's Consumer Confidence Index increasing to 70.8 in February compared to 70.4 a year ago. Along with the Federal Reserve's intervention, these factors have served to keep growth slow and inflation in check.
In order for residential construction to achieve the 8 percent increase projected and top $264.4 billion in 2012, a number of factors still have to fall into place:
- Reduction in the current inventory of homes
- Lenders willing to lend on reasonable terms
- Steady improvement in hiring
Projections indicate a 4% increase in nonresidential buildings for 2012, topping $341 billion, with slightly higher growth in 2013 to $361 billion. Nonresidential contractors are facing many of the same problems as residential contractors. In addition, competition is fierce, with low price still the name of the game. Project owners who are ready to restart their building programs are expecting hungry contractors to submit very low bids. One of the keys for growth will be the return of private investment in construction. Additionally, federal, state and local government construction have been dialed back until budgets are in better repair and tax revenues return to levels that are more normal. Research indicates that there are signs this is starting to happen. BD+C
Related Stories
Retail Centers | Jan 31, 2022
Amazon Style: Amazon’s latest innovative physical shopping experience
In January, Amazon unveiled plans to build a physical fashion store concept, dubbed Amazon Style, in Los Angeles. The e-commerce giant says the store will offer “together the best of shopping on Amazon–great prices, selection, and convenience–with an all new shopping experience built to inspire.”
Sponsored | BD+C University Course | Jan 30, 2022
Optimized steel deck design
This course provides an overview of structural steel deck design and the ways to improve building performance and to reduce total-project costs.
Laboratories | Jan 28, 2022
3 must-know strategies for developers in today’s life sciences industry
While the life sciences industry had been steadily growing, this growth exploded when the pandemic arrived—and there is no indication that this lightning-fast pace will slow down any time soon.
Cultural Facilities | Jan 27, 2022
Growth in content providers creates new demand for soundstage facilities
Relativity Architects' Partner Tima Bell discusses how the explosion in content providers has outpaced the availability of TV and film production soundstages in North America and Europe.
Sponsored | Webinar | Jan 27, 2022
On-demand webinar: Open plenum design with baffles
With their vast, airy aesthetics, open-plan interiors offer a feel that can inspire and support occupants. But they can also create acoustical challenges that negate the effects of all that beauty. Baffles are an ideal ceiling design solution that address both aesthetics and performance.
Architects | Jan 27, 2022
Gensler’s latest design forecast is also a call to action
The firm urges the AEC industry to take the lead in creating a fairer, cleaner built environment that faces many obstacles.
Architects | Jan 26, 2022
HMC Architects Welcomes New Director of Sustainability
The Sacramento studio of leading national architecture and design firm HMC Architects has announced the appointment of new Director of Sustainability Jennifer Wehling, who joined in December
Market Data | Jan 26, 2022
2022 construction forecast: Healthcare, retail, industrial sectors to lead ‘healthy rebound’ for nonresidential construction
A panel of construction industry economists forecasts 5.4 percent growth for the nonresidential building sector in 2022, and a 6.1 percent bump in 2023.
Sponsored | Steel Buildings | Jan 25, 2022
Structural Game Changer: Winning solution for curved-wall gymnasium design
Sponsored | Steel Buildings | Jan 25, 2022
Multifamily + Hospitality: Benefits of building in long-span composite floor systems
Long-span composite floor systems provide unique advantages in the construction of multi-family and hospitality facilities. This introductory course explains what composite deck is, how it works, what typical composite deck profiles look like and provides guidelines for using composite floor systems. This is a nano unit course.