Healthy fundamentals in the commercial property market combined with the international economy returning to more traditional growth levels are factoring into a projected increase in growth for the design and construction industry.
Led by the hotel and retail project categories, the commercial sector looks to see the biggest gains in construction spending, with demand for institutional projects increasing at a more moderate level.
The American Institute of Architects’ (AIA) semi-annual Consensus Construction Forecast, a survey of the nation’s leading construction forecasters, is projecting that spending will see a 5.8% increase in 2014, with next year’s projections raised to 8%.
“Since the overall economy is stabilizing, there should be a significant improvement in the outlook for the construction industry that has been recovering at a slow and steady pace the last two years,” said AIA Chief Economist, Kermit Baker, PhD, Hon. AIA. “At a more granular level, the surging housing market, growing commercial property values, and declining office and retail vacancies are all contributing to what is expected to amount to a much greater spending on nonresidential building projects.”
Baker continued, “The rosy outlook also contains several concerns for the entire construction industry. Rising construction costs, a shortage of skilled labor, and bank credit standards that have not eased up enough to keep pace with the strong demand for construction financing are all serious challenges to sustained growth in the coming years.”
Here is AIA's 2014 and 2015 forecast by sector:
About the AIA Consensus Construction Forecast Panel
The AIA Consensus Construction Forecast Panel is conducted twice a year with the leading nonresidential construction forecasters in the United States including, McGraw Hill Construction, Wells Fargo Securities, IHS-Global Insight, Moody’s economy.com, Reed Business Information, Associated Builders & Contractors and FMI. The purpose of the Consensus Construction Forecast Panel is to project business conditions in the construction industry over the coming 12 to 18 months. The Consensus Construction Forecast Panel has been conducted for 15 years.
About The American Institute of Architects
Founded in 1857, members of the American Institute of Architects consistently work to create more valuable, healthy, secure, and sustainable buildings, neighborhoods, and communities. Through nearly 300 state and local chapters, the AIA advocates for public policies that promote economic vitality and public well being. Members adhere to a code of ethics and conduct to ensure the highest professional standards. The AIA provides members with tools and resources to assist them in their careers and business as well as engaging civic and government leaders, and the public to find solutions to pressing issues facing our communities, institutions, nation and world. Visit www.aia.org.
Related Stories
Building Team | Apr 14, 2022
TLC Engineering Solutions, Inc. acquires Moye I.T. Consulting, LLC
TLC Engineering Solutions, Inc. (TLC) is excited to announce that Moye I.T. Consulting, LLC (Moye Consulting) has joined the TLC team, expanding the breadth of its IT and Technology capabilities, as well as its national portfolio.
Wood | Apr 13, 2022
Mass timber: Multifamily’s next big building system
Mass timber construction experts offer advice on how to use prefabricated wood systems to help you reach for the heights with your next apartment or condominium project.
AEC Tech | Apr 13, 2022
Morphosis designs EV charging station for automaker Genesis
LA-based design and architecture firm Morphosis has partnered with automotive luxury brand Genesis to bring their signature brand and styling, attention-to-detail, and seamless customer experience to the design of Electric Vehicle Charging (EVC) Stations.
AEC Tech | Apr 13, 2022
A robot automates elevator installation
Schindler—which manufactures and installs elevators, escalators, and moving walkways—has created a robot called R.I.S.E. (robotic installation system for elevators) to help install lifts in high-rise buildings.
Government Buildings | Apr 11, 2022
Milan’s new US Consulate celebrates Italian design
In Milan, Italy, the new U.S. Consulate General broke ground on April 6. Managed by Overseas Buildings Operations (OBO), a U.S. government agency that directs overseas builds, the 10-acre campus will feature a new Consulate building, as well as the restoration of the site’s historic Liberty Building and reconstruction of a pavilion on the 80,000-square-foot parade ground.
Sponsored | BD+C University Course | Apr 10, 2022
Designing with commercial and industrial insulated metal wall panels
Discover the characteristics, benefits and design options for commercial/industrial buildings using insulated metal panels (IMPs). Recognize the factors affecting panel spans and the relationship of these to structural supports. Gain knowledge of IMP code compliance.
Laboratories | Apr 7, 2022
North Carolina's latest play for biotech real estate development
The Tar Heel State is among a growing number of markets rolling out the welcome mat for lab spaces.
Healthcare Facilities | Apr 7, 2022
Visibility breeds traffic in healthcare design
Ryan Companies has completed several healthcare projects that gain exposure by being near retail stores or office buildings.
Multifamily Housing | Apr 7, 2022
Ken Soble Tower becomes world’s largest residential Passive House retrofit
The project team for the 18-story high-rise for seniors slashed the building’s greenhouse gas emissions by 94 percent and its heating energy demand by 91 percent.
Architects | Apr 7, 2022
Perkins Eastman, Kliment Halsband Architects to merge
Perkins Eastman and Kliment Halsband Architects have announced their merger, which will combine the formidable talents, experience, and skills of both legacy firms. With Perkins Eastman celebrating its 40th anniversary and Kliment Halsband celebrating its 50th, this merger promises to create powerful synergies.