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 3, 2013
Another edible city? Artist creates model city with chewing gum
French artist Jeremy Laffon pieced together a model city with thousands of sticks of mint-green chewing gum.
| May 2, 2013
First look: UC-Davis art museum by SO-IL and Bohlin Cywinski Jackson
The University of California, Davis has selected emerging New York-based practice SO-IL to design a new campus’ art museum, which is envisioned to be a “regional center of experimentation, participation and learning.”
| May 2, 2013
A snapshot of the world's amazing construction feats (in one flashy infographic)
From the Great Pyramids of Giza to the U.S. Interstate Highway System, this infographic outlines interesting facts about some of the world's most notable construction projects.
| May 2, 2013
Holl-designed Campbell Sports Center completed at Columbia
Steven Holl Architects celebrates the completion of the Campbell Sports Center, Columbia University’s new training and teaching facility.
| May 2, 2013
BIM group proposes uniform standards for how complete plans need to be
A nationwide group of Building Information Modeling users, known as the BIMForum, is seeking industry input on a proposed set of standards establishing how complete Building Information Models (BIMs) need to be for different stages of the design and construction process.
| May 2, 2013
New web community aims to revitalize abandoned buildings
Italian innovators Andrea Sesta and Daniela Galvani hope to create a worldwide database of abandoned facilities, ripe for redevelopment, with their [im]possible living internet community.
| May 1, 2013
A LEGO lover's dream: Guide to building the world's iconic structures with LEGO
A new book from LEGO master builder Warren Elsmore offers instructions for creating scale models of buildings and landmarks with LEGO.
