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 | Aug 7, 2015
GOVERNMENT SECTOR GIANTS: Public sector spending even more cautiously on buildings
AEC firms that do government work say their public-sector clients have been going smaller to save money on construction projects, according to BD+C's 2015 Giants 300 report.
Giants 400 | Aug 7, 2015
K-12 SCHOOL SECTOR GIANTS: To succeed, school design must replicate real-world environments
Whether new or reconstructed, schools must meet new demands that emanate from the real world and rapidly adapt to different instructional and learning modes, according to BD+C's 2015 Giants 300 report.
Giants 400 | Aug 7, 2015
MULTIFAMILY AEC GIANTS: Slowdown prompts developers to ask: Will the luxury rentals boom hold?
For the last three years, rental apartments have occupied the hot corner in residential construction, as younger people gravitated toward renting to be closer to urban centers and jobs. But at around 360,000 annual starts, multifamily might be peaking, according to BD+C's 2015 Giants 300 report.
Giants 400 | Aug 7, 2015
UNIVERSITY SECTOR GIANTS: Collaboration, creativity, technology—hallmarks of today’s campus facilities
At a time when competition for the cream of the student/faculty crop is intensifying, colleges and universities must recognize that students and parents are coming to expect an education environment that foments collaboration, according to BD+C's 2015 Giants 300 report.
Giants 400 | Aug 7, 2015
RECONSTRUCTION AEC GIANTS: Restorations breathe new life into valuable older buildings
AEC Giants discuss opportunities and complications associated with renovation, restoration, and adaptive reuse construction work.
BIM and Information Technology | Aug 6, 2015
After refueling its capital tank, WeWork acquires BIM consultant Case
The merger is expected to help standardize how WeWork designs and builds out office space.
Giants 400 | Aug 6, 2015
BIM GIANTS: Robotic reality capture, gaming systems, virtual reality—AEC Giants continue tech frenzy
Given their size, AEC Giants possess the resources and scale to research and test the bevy of software and hardware solutions on the market. Some have created internal innovation labs and fabrication shops to tinker with emerging technologies and create custom software tools. Others have formed R&D teams to test tech tools on the job site.
Giants 400 | Aug 6, 2015
GIANTS 300 REPORT: Top 115 Healthcare Architecture Firms
HDR, Stantec, and Perkins+Will top Building Design+Construction's 2015 ranking of the largest healthcare architecture and architecture/engineering firms in the U.S.
Giants 400 | Aug 6, 2015
HEALTHCARE AEC GIANTS: Hospital and medical office construction facing a slow but steady recovery
Construction of hospitals and medical offices is expected to shake off its lethargy in 2015 and recover modestly over the next several years, according to BD+C's 2015 Giants 300 report.
Codes and Standards | Aug 6, 2015
ConsensusDocs releases new CM agency contract standard agreement
For use when owner acts as the construction manager, hires a construction manager, or uses multiple prime contractors
