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
| Jun 1, 2012
Robert Wilson joins SmithGroupJJR
Wilson makes the move to SmithGroupJJR from VOA Associates, Inc., where he served as a senior vice president and technical director in its Chicago office.
| Jun 1, 2012
Gilbane Building's Sue Klawans promoted
Industry veteran tasked with boosting project efficiency and driving customer satisfaction, to direct operational excellence efforts.
| Jun 1, 2012
Ground broken for Children’s Hospital Colorado South Campus
Children’s Hospital Colorado expects to host nearly 80,000 patient visits at the South Campus during its first year.
| Jun 1, 2012
K-State Olathe Innovation Campus receives LEED Silver
Aspects of the design included a curtain wall and punched openings allowing natural light deep into the building, regional materials were used, which minimized the need for heavy hauling, and much of the final material included pre and post-consumer recycled content.
| Jun 1, 2012
New York City Department of Buildings approves 3D BIM site safety plans
3D BIM site safety plans enable building inspectors to take virtual tours of construction projects and review them in real-time on site.
| May 31, 2012
Product Solutions June 2012
Curing agents; commercial faucets; wall-cladding systems.
| May 31, 2012
8 steps to a successful BIM marketing program
It's not enough to have BIM capability--you have to know how to sell your BIM expertise to clients and prospects.
| May 31, 2012
3 Metal Roofing Case Studies Illustrate Benefits
Metal roofing systems offer values such as longevity, favorable life cycle costs, and heightened aesthetic appeal.
| May 31, 2012
AIA Course: High-Efficiency Plumbing Systems for Commercial and Institutional Buildings
Earn 1.0 AIA/CES learning units by studying this article and successfully completing the online exam.
| May 31, 2012
2011 Reconstruction Award Profile: Seegers Student Union at Muhlenberg College
Seegers Student Union at Muhlenberg College has been reconstructed to serve as the core of social life on campus.