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
| May 28, 2014
B.R. Fries completes medical center focused on male health
Occupying the building’s entire second floor, the male-centric center is honeycombed with examination and consultation rooms, as well as areas for noninvasive testing.
| May 28, 2014
Moshe Safdie's twin residential towers in Singapore will be connected by 'sky pool' 38 stories in the air [slideshow]
Moshe Safdie's latest project, a pair of 38-story luxury residential towers in Singapore, will be linked by three "sky garden" bridges, including a rooftop-level bridge with a lap pool running the length between the two structures.
| May 27, 2014
Supergreen Venter lab displayed in new walk-through video
ZGF Architects' La Jolla building for genomics pioneer J. Craig Venter and his nonprofit research organization aims to be the first net-zero energy, carbon-neutral biological lab.
| May 27, 2014
America's oldest federal public housing development gets a facelift
First opened in 1940, South Boston's Old Colony housing project had become a symbol of poor housing conditions. Now the revamped neighborhood serves as a national model for sustainable, affordable multifamily design.
| May 27, 2014
One World Trade Center cuts rents due to sluggish activity
Sluggish economy and lackluster leasing force developer The Durst Organization and the Port Authority of New York and New Jersey to reduce asking rents by nearly 10% to $69/sf.
| May 27, 2014
Fire Rated Glass contributes to open lab environment at JSNN
Openness and transparency were high priorities in the design of the Joint School of Nanoscience & Nanoengineering within the Gateway University Research Park in Greensboro, N.C. Because the facility’s nanobioelectronics clean room houses potentially explosive materials, it needed to be able to contain flames, heat, and smoke in the event of a fire. SPONSORED CONTENT
| May 27, 2014
What are your services worth?
The price, cost, and value of design services are explored in a recent Design Intelligence article authored by Scott Simpson, a senior fellow of the Design Futures Council. Value, he explains, represents the difference between “price” and “cost.” SPONSORED CONTENT
| May 27, 2014
Contractors survey reveals improving construction market
The construction industry is on the road to recovery, according to a new survey by Metal Construction News. Most metrics improved from the previous year’s survey, including a 19.4% increase in the average annual gross contracting sales volume. SPONSORED CONTENT
| May 27, 2014
How to develop a dynamic referral system
Compelling your clients to provide you with quality referrals is one of the best ways to build a successful business. Here are ways to ‘train’ your clients to make quality referrals. SPONSORED CONTENT
Sponsored | | May 27, 2014
Grim Hall opens the door to fire safety with fire-rated ceramic glass
For the renovation of Lincoln University’s Grim Hall life sciences building into a state-of-the-art computer facility, Tevebaugh Associates worked to provide students and faculty with improved life safety protection. Updating the 1925-era facility's fire-rated doors was an important component of the project.
