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 | Jul 3, 2024
So you want to get published: What’s next?
In the AEC industry, securing media attention is no longer a niche endeavor but an essential component of a holistic marketing strategy.
Laboratories | Jul 3, 2024
New science, old buildings: Renovating for efficiency, flexibility, and connection
What does the research space of the future look like? And can it be housed in older buildings—or does it require new construction?
MFPRO+ New Projects | Jul 2, 2024
Miami residential condo tower provides a deeded office unit for every buyer
A new Miami residential condo office tower sweetens the deal for buyers by providing an individual, deeded and furnished office with each condo unit purchased. One Twenty Brickell Residences, a 34-story, 240-unit tower, also offers more than 60,000 sf of exclusive residential amenities.
Student Housing | Jul 1, 2024
Two-tower luxury senior living community features wellness and biophilic elements
A new, two-building, 27-story senior living community in Tysons, Va., emphasizes wellness and biophilic design elements. The Mather, a luxury community for adults aged 62 and older, is situated on a small site surrounded by high-rises.
Office Buildings | Jul 1, 2024
Mastering office layouts: 5 primary models for maximum efficiency and productivity
When laying out an office, there are many factors to consider. It’s important to maximize the space, but it’s equally important to make sure the design allows employees to work efficiently.
Smart Buildings | Jul 1, 2024
GSA to invest $80 million on smart building technologies at federal properties
The U.S. General Services Administration (GSA) will invest $80 million from the Inflation Reduction Act (IRA) into smart building technologies within 560 federal buildings. GSA intends to enhance operations through granular controls, expand available reporting with more advanced metering sources, and optimize the operator experience.
Sustainability | Jul 1, 2024
Amazon, JPMorgan Chase among companies collaborating with ILFI to advance carbon verification
Four companies (Amazon, JPMorgan Chase, JLL, and Prologis) are working with the International Living Future Institute to support development of new versions of Zero Carbon Certification.
K-12 Schools | Jul 1, 2024
New guidelines for securing schools and community spaces released by the Door Security and Safety Foundation
The Door Security and Safety Foundation (DSSF), in collaboration with Door and Hardware Institute (DHI), recently released of “Are Your Door Openings Secure?.” The document provides guidelines to equip school administrators, building management personnel, and community leaders with a clear roadmap to create a secure and safe environment.
Products and Materials | Jun 30, 2024
Top products from AIA 2024
This month, Building Design+Construction editors are bringing you the top products displayed at the 2024 AIA Conference on Architecture & Design. Nearly 550 building product manufacturers showcased their products—here are 17 that caught our eye.
University Buildings | Jun 28, 2024
The American University in Cairo launches a 270,000-sf expansion of its campus in New Cairo, Egypt
In New Cairo, Egypt, The American University in Cairo (AUC) has broken ground on a roughly 270,000-sf expansion of its campus. The project encompasses two new buildings intended to enhance the physical campus and support AUC’s mission to provide top-tier education and research.