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
BIM and Information Technology | Jul 6, 2015
New documentary shows Legos as touchstones of creativity
The film's narrator, actor Jason Bateman, says it’s a story “about a simple toy and how its unique properties ushered in a new era of creativity for a whole generation.”
Contractors | Jul 1, 2015
ABC: Nonresidential construction spending continues growth with stellar May
Through the first five months of 2015, nonresidential construction spending is having its second best year since the Census Bureau began tracking the metric in 2002, according to ABC.
Architects | Jun 29, 2015
Getty Foundation announces second series of ‘Keeping It Modern’ grants to conserve 20th century architecture
Frank Lloyd Wright’s Unity Temple and Erich Mendelsohn’s Einstein Tower are among the 14 projects added to the Keeping It Modern grant program.
Architects | Jun 29, 2015
9 top picks for continuing education from BD+C University
A roundup of top AIA/CES Discovery courses from BD+C University.
Industrial Facilities | Jun 24, 2015
5 trends that will shape the future of scientific labs
Scientific research is increasingly focusing on data collection and analytical analysis of that data, meaning the "lab of the future" will more closely resemble contemporary tech spaces, writes Gensler’s Erik Lustgarten.
Architects | Jun 23, 2015
Architecture Billings Index back to positive territory for May 2015
The American Institute of Architects reported the May ABI score was 51.9, up from a mark of 48.8 in April.
Architects | Jun 23, 2015
If film directors designed homes, what would they look like?
From Burton to Bergman, Gondry to Greenway, artist Federico Babina illustrates what buildings would look like if designed by the world’s greatest directors.
High-rise Construction | Jun 23, 2015
The world's best new skyscrapers for 2015
One World Trade Center and Abu Dhabi's Burj Mohammed Bin Rashid Tower are among the four towers named Best Tall Buildings by the Council on Tall Buildings and Urban Habitat.
Museums | Jun 23, 2015
Moreau Kusunoki's 'art in the city' scheme wins Guggenheim Helsinki design competition
The firm’s design concept makes use of the museum’s site, turning it into a bustling, well-connected waterfront hub.
Architects | Jun 22, 2015
NCARB adopts alternative for certification of foreign architects
The change, effective July 1, 2016, will replace the current BEFA Program’s requirements, eliminating the committee dossier review and the need to document seven years of credentialed practice in a foreign country.