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 | Sep 30, 2020
Sir David Adjaye OBE to receive 2021 Royal Gold Medal for Architecture
His practice, Adjaye Associates, was founded in 2000 and today has studios in Accra, London and New York, with projects across the world.
Coronavirus | Sep 28, 2020
Evaluating and investing resources to navigate past the COVID-19 pandemic
As AEC firm leaders consider worst-case scenarios and explore possible solutions to surmount them, they learn to become nimble, quick, and ready to pivot as circumstances demand.
Coronavirus | Sep 24, 2020
The Weekly show: Building optimization tech, the future of smart cities, and storm shelter design
The September 24 episode of BD+C's "The Weekly" is available for viewing on demand.
Healthcare Facilities | Sep 10, 2020
Easing the oncology journey: The role of urgent care
Oncology patients are better served when they’re connected to the right staff.
Airports | Sep 10, 2020
The Weekly show: Curtis Fentress, FAIA, on airport design, and how P3s are keeping university projects alive
The September 10 episode of BD+C's "The Weekly" is available for viewing on demand.
Architects | Sep 8, 2020
The New City project by Eric Owen Moss Architects receives AIA’s Twenty-five Year Award
AIA’s Twenty-five Year Award is conferred on a building that has set a precedent for the last 25-35 years and continues to set standards of excellence for its architectural design and significance.
Architects | Sep 1, 2020
An evidenced-based approach to elevate the workplace experience
A new NBBJ report presents design concepts for providing people with opportunities to recharge and engage in the workplace.
K-12 Schools | Sep 1, 2020
The rise of inquiry-based learning in K-12 communities
Inquiry-based education offers a methodology that does not rely solely on the educator being the lead in all learning.
Giants 400 | Aug 28, 2020
2020 Giants 400 Report: Ranking the nation's largest architecture, engineering, and construction firms
The 2020 Giants 400 Report features more than 130 rankings across 25 building sectors and specialty categories.
Architects | Aug 27, 2020
Strategically planning your firm past the COVID-19 pandemic
As AEC firm leaders consider worst-case scenarios and explore possible solutions to surmount them, they learn to become nimble, quick, and ready to pivot as circumstances demand.