![]() |
Healthcare construction spending grew at a compound rate of more than 10% for seven years through mid-2008, but has stalled since then. The stall, however, still represents better growth than almost any other construction market during the recession, which deepened as a result of the fall 2008 credit freeze.
During the stall, hospital construction spending increased 9% from the period before the credit freeze, while spending for nursing homes and other residential care facilities dropped 20% and spending for specialized medical office buildings fell 17%. Hospital construction spending is projected to remain steady through 2010, rising only as a result of higher project costs.
Hospital managers are enjoying a steadily rising revenue stream from patient care, but offsetting that are concerns about possible cuts in fees from states for âfree careâ and cuts in Medicaid and Medicare. As a precaution, some projects have been trimmed back or deferred.
The recent slowing trend for medical offices and residential care buildings parallels trends in other developed financed sectors, although the slowdown began later and so far has been less severe. Some developers lost credit access because of weakened income and balance sheets. Others lost credit access because lenders are concerned about cash flow coming from new capacity in a depressed economy. Bank examiners have also been steering regional and local lenders away from nonresidential mortgages. As a result, those two small commercial healthcare sectors will continue to decline, along with other commercial properties, through the winter. Following that, they will decline further because spending for other commercial properties will have begun to expand and projects in the pipeline will have fallen substantially.
Look for healthcare construction spending to return to a 10% annual growth pace in 2011, reflective of the usual cyclical surge after a recession. The rebound for hospital construction spending results from delayed stimulus plan funding and the resumption of work that was put on hold while healthcare was debated in Washington. âJim Haughey, BD+C economist
Related Stories
3D Printing | Apr 11, 2023
University of Michiganâs DART Laboratory unveils Shell Wallâa concrete wall thatâs lightweight and freeform 3D printedÂ
The University of Michiganâs DART Laboratory has unveiled a new product called Shell Wallâwhich the organization describes as the first lightweight, freeform 3D printed and structurally reinforced concrete wall. The innovative product leverages DART Laboratoryâs research and development on the use of 3D-printing technology to build structures that require less concrete.Â
Cladding and Facade Systems | Apr 5, 2023
Façade innovation: University of Stuttgart tests a âsaturated building skinâ for lessening heat islands
HydroSKIN is a façade made with textiles that stores rainwater and uses it later to cool hot building exteriors. The façade innovation consists of an external, multilayered 3D textile that acts as a water collector and evaporator.Â
Windows and Doors | Apr 4, 2023
Schweiss Doors erects manufacturing building to showcase new doors
Schweiss Doors, the premier manufacturer of hydraulic and bifold liftstrap doors, erected a new manufacturing facility which will also serve as a showcase for the companyâs new âfree-standingâ header frames.
Windows and Doors | Mar 5, 2023
2022 North American Fenestration Standard released
The 2022 edition of AAMA/WDMA/CSA 101/I.S.2/A440, âNorth American Fenestration Standard/Specification for windows, doors, and skylightsâ (NAFS) has been published. The updated 2022 standard replaces the 2017 edition, part of a continued evolution of the standard to improve harmonization across North America, according to a news release.
AEC Innovators | Mar 3, 2023
Meet BD+C's 2023 AEC Innovators
More than ever, AEC firms and their suppliers are wedding innovation with corporate responsibility. How they are addressing climate change usually gets the headlines. But as the following articles in our AEC Innovators package chronicle, companies are attempting to make an impact as well on the integrity of their supply chains, the reduction of construction waste, and answering calls for more affordable housing and homeless shelters. As often as not, these companies are partnering with municipalities and nonprofit interest groups to help guide their production.
Codes | Mar 2, 2023
Biden Administrationâs proposed building materials rules increase domestic requirements
The Biden Administrationâs proposal on building materials rules used on federal construction and federally funded state and local buildings would significantly boost the made-in-America mandate. In the past, products could qualify as domestically made if at least 55% of the value of their components were from the U.S.Â
AEC Innovators | Feb 28, 2023
Meet the 'urban miner' who is rethinking how we deconstruct and reuse buildings
New Horizon Urban Mining, a demolition firm in the Netherlands, has hitched its business model to construction materials recycling. It's plan: deconstruct buildings and infrastructure and sell the building products for reuse in new construction. New Horizon and its Founder Michel Baars have been named 2023 AEC Innovators by Building Design+Construction editors.
Sustainability | Feb 8, 2023
A wind energy systemâwithout the bladesâcan be placed on commercial building rooftops
Aeromine Technologiesâ bladeless system captures and amplifies a buildingâs airflow like airfoils on a race car.
Mass Timber | Jan 27, 2023
How to set up your next mass timber construction project for success
XL Construction co-founder Dave Beck shares important preconstruction steps for designing and building mass timber buildings.
Concrete | Jan 24, 2023
Researchers investigate ancient Roman concrete to make durable, lower carbon mortar
Researchers have turned to an ancient Roman concrete recipe to develop more durable concrete that lasts for centuries and can potentially reduce the carbon impact of the built environment.