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
| Mar 23, 2011
Architecture Billings Index shows nominal increase
The American Institute of Architects (AIA) reported the February Architecture Billings Index score was 50.6, up slightly from a reading of 50.0 the previous month. This score reflects a modest increase in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 56.4, compared to a mark of 56.5 in December.
| Mar 22, 2011
The American National Standards Institute accredits Stantec for greenhouse gas verification
Stantec Consulting Ltd.’s Atmospheric Environment Group has been awarded accreditation by the American National Standards Institute (ANSI) for verification of assertions related to greenhouse gas (GHG) emissions. The Scope of Accreditation is for verification of emissions and removals at the organizational level for Group 1 – General.
| Mar 22, 2011
Mayor Bloomberg unveils plans for New York City’s largest new affordable housing complex since the ’70s
Plans for Hunter’s Point South, the largest new affordable housing complex to be built in New York City since the 1970s, include new residences for 5,000 families, with more than 900 in this first phase. A development team consisting of Phipps Houses, Related Companies, and Monadnock Construction has been selected to build the residential portion of the first phase of the Queens waterfront complex, which includes two mixed-use buildings comprising more than 900 housing units and roughly 20,000 square feet of new retail space.
| Mar 21, 2011
RATIO Architects announces merger with Cherry Huffman Architects
RATIO Architects, Inc. with studios in Indianapolis and Champaign, Ill., recently announced it has merged with prominent Raleigh, N.C., firm Cherry Huffman Architects.
| Mar 18, 2011
Universities will compete to build a campus on New York City land
New York City announced that it had received 18 expressions of interest in establishing a research center from universities and corporations around the world. Struggling to compete with Silicon Valley, Boston, and other high-tech hubs, officials charged with developing the city’s economy have identified several city-owned sites that might serve as a home for the research center for applied science and engineering that they hope to establish.
| Mar 17, 2011
Perkins Eastman launches The Green House prototype design package
Design and architecture firm Perkins Eastman is pleased to join The Green House project and NCB Capital Impact in announcing the launch of The Green House Prototype Design Package. The Prototype will help providers develop small home senior living communities with greater efficiency and cost savings—all to the standards of care developed by The Green House project.
| Mar 17, 2011
Hospitality industry turns to HTS Texas for ‘do not disturb’ air conditioned comfort
Large resort hotels and hospitality properties throughout the Southwest have been working with local contractors, engineers and HTS Texas for the latest innovations in quiet heating, ventilating and air conditioning (HVAC) equipment. The company has completed 12+ projects throughout Texas and the Southwestern U.S. over the past 18 to 24 months, and is currently working on six more hotel projects throughout the region.
| Mar 16, 2011
AIA offers assistance to Japan's Architects, U.S. agencies coordinating disaster relief
“Our hearts go out to the people of Japan as a result of this horrific earthquake and tsunami,” said Clark Manus, FAIA, 2011 President of the AIA. “We are in contact with our colleagues at AIA Japan and the Japan Institute of Architects to offer not only our condolences but our profession's technical and professional expertise when the initiative begins focusing on rebuilding."
| Mar 16, 2011
Are you working on a fantastic residence hall project? Want to tell us about it?
The feature story for the May 2011 issue of Building Design+Construction will focus on new trends in university residence hall design and construction, and we’re looking for great projects to report on and experts to interview. Projects can involve new construction or remodeling/reconstruction work, and can be recently completed, currently under construction, or still on the boards.