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
Architects | Mar 15, 2021
A life in architecture – Lessons from my father
A veteran designer looks back on the lessons his father, a contractor, taught him.
Architects | Mar 11, 2021
Calling all building design professionals: BD+C needs your expertise on design innovation in 2021
This new BD+C research project explores the leading drivers, sources of inspiration, and successful outcomes for design innovation projects and initiatives.
Coronavirus | Mar 11, 2021
The Weekly show, March 11, 2021: 5 building products for COVID-related conditions, and AI for MEP design
This week on The Weekly show, BD+C editors speak with AEC industry leaders about building products and systems that support COVID-related conditions, and an AI tool that automates the design of MEP systems.
Laboratories | Mar 10, 2021
8 tips for converting office space to life sciences labs
Creating a successful life sciences facility within the shell of a former office building can be much like that old “square peg round hole” paradigm. Two experts offer important advice.
AEC Tech | Mar 4, 2021
The Weekly show, March 4, 2021: Bringing AI to the masses, and Central Station Memphis hotel
This week on The Weekly show, BD+C editors speak with AEC industry leaders about the award-winning Central Station Memphis hotel reconstruction project, and how Autodesk aims to bring generative design and AI tools to the AEC masses.
Architects | Mar 1, 2021
OMA designs 7-mile-long underwater sculpture park
The project will be completed in several phases.
Architects | Mar 1, 2021
AIA elevates 102 members to the College of Fellows
AIA fellowship recognizes significant contributions to the profession of architecture and society.
Market Data | Feb 24, 2021
2021 won’t be a growth year for construction spending, says latest JLL forecast
Predicts second-half improvement toward normalization next year.
Events Facilities | Feb 22, 2021
Weiss/Manfredi designs $250 million expansion for Longwood Gardens
The project will transform 17 acres of the core conservatory area.
