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
| Dec 29, 2014
14 great solutions for the commercial construction market
Ideas are cheap. Solutions are what count. The latest installment in BD+C's Great Solutions series presents 14 ways AEC professionals, entrepreneurs, and other clever folk have overcome what seemed to be insoluble problems—from how to make bricks out of agricultural waste, to a new way to keep hospitals running clean during construction.
| Dec 29, 2014
HealthSpot station merges personalized healthcare with videoconferencing [BD+C's 2014 Great Solutions Report]
The HealthSpot station is an 8x5-foot, ADA-compliant mobile kiosk that lets patients access a network of board-certified physicians through interactive videoconferencing and medical devices. It was named a 2014 Great Solution by the editors of Building Design+Construction.
| Dec 28, 2014
Robots, drones, and printed buildings: The promise of automated construction
Building Teams across the globe are employing advanced robotics to simplify what is inherently a complex, messy process—construction.
BIM and Information Technology | Dec 28, 2014
The Big Data revolution: How data-driven design is transforming project planning
There are literally hundreds of applications for deep analytics in planning and design projects, not to mention the many benefits for construction teams, building owners, and facility managers. We profile some early successful applications.
| Dec 28, 2014
AIA course: Enhancing interior comfort while improving overall building efficacy
Providing more comfortable conditions to building occupants has become a top priority in today’s interior designs. This course is worth 1.0 AIA LU/HSW.
| Dec 28, 2014
6 trends steering today's college residence halls
University students want more in a residence hall than just a place to sleep. They want a space that reflects their style of living and learning.
| Dec 28, 2014
Using energy modeling to increase project value [AIA course]
This course, worth 1.0 AIA LU/HSW, explores how to increase project value through energy modeling, as well as how to conduct quick payback and net present value studies to identify which energy strategies are most viable for the project.
| Dec 28, 2014
The lowdown on LODs: Bringing clarity to BIM
These days, BIM is par for the course across most facets of design. But a lot of the conversation surrounding BIM still lacks clarity due to ambiguous terminology, a lack of clear-cut guiding illustrations, and widely varying implementation, writes GS&P's John Scannell.
| Dec 28, 2014
The future of airport terminal design: destination status, five-star amenities, stress-free travel
Taking a cue from the hospitality industry, airport executives are seeking to make their facilities feel more like destinations, writes HOK's Richard Gammon.
| Dec 28, 2014
10 key design interventions for a healthier, happier, and more productive workplace
Numerous studies and mountains of evidence confirm what common sense has long suggested: healthy, happier workers are more productive, more likely to collaborate with colleagues, and more likely to innovate in ways that benefit the bottom line, writes Gensler's Kirsten Ritchie.