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
| May 30, 2017
Accelerate Live! talk: Finding the money for your clients' projects, Paul Westlake, Jr., DLR Group|WRL
Architect Paul Westlake, Jr., shares his methods for adding value to projects through creative financing.
| May 30, 2017
Accelerate Live! talk: Health-generating buildings, Marcene Kinney, Angela Mazzi, GBBN Architects
Architects Marcene Kinney and Angela Mazzi share design hacks pinpointing specific aspects of the built environment that affect behavior, well-being, and performance.
Daylighting | May 30, 2017
Sun, sky brightness, and glow: Making the most of daylight [AIA course]
To some project teams, “daylighting” means using glass area to admit direct sunlight, period.
Security/Fire Protection | May 30, 2017
Security begins when you close the door [AIA course]
Selecting door and window systems for any building project demands a complete articulation of safety and security concerns.
Codes and Standards | May 30, 2017
Industry Groups move toward Unified Green Building Model Code in 2018
The effort involves combining ASHRAE's Standard 189.1 with the International Green Construction Code.
Codes and Standards | May 30, 2017
Florida preparing to adjust to new building elevation requirements
New floodplain maps and state code changes loom.
Codes and Standards | May 30, 2017
Heated debate over whether Calif.’s prevailing wage requirement stymies affordable housing
There’s disagreement around how much pay regulations add to cost of projects.
Reconstruction & Renovation | May 30, 2017
Achieving deep energy retrofits in historic and modern-era buildings [AIA course]
Success in retrofit projects requires an entirely different mindset than in new construction, writes Randolph Croxton, FAIA, LEED AP, President of Croxton Collaborative Architects.
Architects | May 26, 2017
Innovations in addressing homelessness
Parks departments and designers find new approaches to ameliorate homelessness.
Architects | May 26, 2017
BIG plans: Architecture isn’t Bjarke Ingels Group’s only growth path
Kai-Uwe Bergmann, the firm’s head of global business development, says engineering and urban planning are key opportunities. And how about that Hyperloop?