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
Giants 400 | Sep 8, 2015
RETAIL SECTOR GIANTS: Callison RTKL, PCL Construction, Jacobs among top retail sector AEC firms
BD+C's rankings of the nation's largest retail sector design and construction firms, as reported in the 2015 Giants 300 Report
BIM and Information Technology | Sep 7, 2015
The power of data: How AEC firms and owners are using analytics to transform design and construction
Case’s bldgs = data conference highlighted how collecting data about personal activities can inform design and extend the power of BIM/VDC.
Sponsored | Architects | Sep 4, 2015
Sydney-based Architectural Firm Dramatically Increases Productivity
ArchiOffice enables the firm to spend less time on managing projects by providing relevant information in one place.
Industrial Facilities | Sep 3, 2015
DATA CENTER SECTOR GIANTS: Fluor, Gensler, Holder Construction among top data center AEC firms
BD+C's rankings of the nation's largest data center sector design and construction firms, as reported in the 2015 Giants 300 Report
High-rise Construction | Sep 3, 2015
Rafael Viñoly's 'Walkie-Talkie' tower named U.K.'s worst new building
The curved, glass tower at 20 Fenchurch Street in London has been known to reflect intense heat onto the streets below (in one instance damaging a car) and cause severe wind gusts.
Airports | Aug 31, 2015
Surveys gauge users’ satisfaction with airports
Several surveys gauge passenger satisfaction with airports, as flyers and airlines weigh in on technology, security, and renovations.
Airports | Aug 31, 2015
Small and regional airports in a dogfight for survival
Small and regional airports are in a dogfight for survival. Airlines have either cut routes to non-hub markets, or don’t provide enough seating capacity to meet demand.
Airports | Aug 31, 2015
Airports expand rental car facilities to ease vehicular traffic at their terminals
AEC teams have found fertile ground in building or expanding consolidated rental car facilities, which are the No. 1 profit centers for most airports.
Airports | Aug 31, 2015
Experts discuss how airports can manage growth
In February 2015, engineering giant Arup conducted a “salon” in San Francisco on the future of aviation. This report provides an insight into their key findings.
Healthcare Facilities | Aug 28, 2015
Hospital construction/renovation guidelines promote sound control
The newly revised guidelines from the Facilities Guidelines Institute touch on six factors that affect a hospital’s soundscape.