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
Steel Buildings | Feb 10, 2015
Korean researchers discover 'super steel'
The new alloy makes steel as strong as titanium.
Architects | Feb 9, 2015
The generalist architect vs. the specialist architect
The corporate world today quite often insists on hiring specialists, but the generalists have an intrinsic quality to adapt to new horizons or even cultural shifts in the market, writes SRG Partnership's Gary Harris.
Museums | Feb 9, 2015
Herzog & de Meuron's M+ museum begins construction in Hong Kong
When completed, M+ will be one of the first buildings in the Foster + Partners-planned West Kowloon Cultural District.
Multifamily Housing | Feb 9, 2015
GSEs and their lenders were active on the multifamily front in 2014
Fannie Mae and Freddie Mac securitized more than $57 billion for 850,000-plus units.
BIM and Information Technology | Feb 8, 2015
BIM for safety: How to use BIM/VDC tools to prevent injuries on the job site
Gilbane, Southland Industries, Tocci, and Turner are among the firms to incorporate advanced 4D BIM safety assessment and planning on projects.
Museums | Feb 6, 2015
Tacoma Art Museum's new wing features sun screens that operate like railroad box car doors
The 16-foot-tall screens, operated by a hand wheel, roll like box car doors across the façade and interlace with a set of fixed screens.
Office Buildings | Feb 6, 2015
6 factors steering workplace design at financial services firms
Grossly underutilized space and a lack of a mobility strategy are among the trends identified by HOK based on its research of 11 top-tier financial services firms.
Cultural Facilities | Feb 6, 2015
Architects look to ‘activate’ vacant block in San Diego with shipping container-based park
A team of alumni from the NewSchool of Architecture and Design in San Diego has taken over a 28,500-sf empty city block in that metro to create what they hope will be a revenue-generating urban park.
Multifamily Housing | Feb 6, 2015
Fannie Mae to offer lower interest rates to LEED-certified multifamily properties
For certified properties, Fannie Mae is now granting a 10 basis point reduction in the interest rate of a multifamily refinance, acquisition, or supplemental mortgage loan.
Airports | Feb 6, 2015
Zaha Hadid-designed terminal in Beijing will be world’s largest
The terminal will accommodate 45 million passengers per year, and will be a hub for both air and rail travel.