With slower than expected activity in the nonresidential construction sector in the first half of the year, the projections for growth in spending have been scaled back.
Led by the hotel and retail project categories, the commercial sector looks largely unchanged, but a noteworthy drop in demand for institutional projects has caused participants in the American Institute of Architects’ (AIA) semi-annual Consensus Construction Forecast, a survey of the nation’s leading construction forecasters, to reduce projections for spending to a 2.3% increase in 2013, with next year’s projections raised to 7.6%.
Market Segment Consensus Growth Forecasts |
||
2013 | 2014 | |
Overall nonresidential | 2.30% | 7.60% |
Commercial / industrial | 8.50% | 11.50% |
Hotels | 17.40% | 15.00% |
Retail | 8.20% | 11.70% |
Office buildings | 5.80% | 9.50% |
Industrial facilities | 4.00% | 6.30% |
Institutional | -1.80% | 5.60% |
Religious | 1.50% | 6.00% |
Healthcare facilities | 1.40% | 7.70% |
Education | -2.50% | 4.80% |
Amusement/recreation | -4.10% | 6.50% |
Public safety | -4.80% | 1.00% |
“A disappointing recovery of the U.S. economy is limiting need for new nonresidential building activity,” said AIA Chief Economist, Kermit Baker, PhD, Hon. AIA. “Optimism for a stronger performance next year is based on the recent increase in domestic energy production, the boost to the general economy from a resurgent housing market, and improving employment figures that should help drive demand in the design and construction sectors.”
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 14 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 12, 2022
10 resource reduction measures for more efficient and sustainable biopharma facilities
Resource reduction measures are solutions that can lead to lifecycle energy and cost savings for a favorable return on investment while simultaneously improving resiliency and promoting health and wellness in your facility.
Office Buildings | Jul 12, 2022
Miami office tower nears completion, topping off at 55 stories
In Miami, construction of OKO Group and Cain International’s 830 Brickell office tower is nearing completion.
University Buildings | Jul 11, 2022
Student life design impacts campus wellness
As interior designers, we have the opportunity and responsibility to help students achieve deeper levels of engagement in their learning, social involvement, and personal growth on college campuses.
Museums | Jul 11, 2022
Denmark opens a museum that tells the stories of refugees worldwide
Located on the site of Denmark’s largest World War II refugee camp, the new Refugee Museum of Denmark, FLUGT, tells the stories of refugees from the camp as well as refugees worldwide.
Codes and Standards | Jul 8, 2022
Inefficient supply chains, outdated project delivery systems hamper construction investment
Constructing and justifying the cost of physical assets such as a manufacturing plant is much more difficult than it was decades ago, according to a report by Steffen Fuchs, senior partner with McKinsey & Company.
Airports | Jul 8, 2022
Phoenix Sky Harbor Airport’s new terminal prioritizes passenger experience and sustainability
McCarthy Building Companies recently completed construction of the final concourse in Terminal 4 at Phoenix Sky Harbor International Airport.
Architects | Jul 7, 2022
Page acquires AE giant EYP to form 1,300-person international design firm
The combined firm will “be able to invest in research and thought leadership to co-create with our clients,” stated Page CEO Thomas McCarthy.
Building Team | Jul 7, 2022
Report explores improving architect/contractor relationship
A new study by the American Institute of Architects and the Associated General Contractors of America focuses on improving the relationship between architects and contractors.
Airports | Jul 7, 2022
Love at first flight: The power of first impressions in airports
As architects, how we design a terminal and choreograph the passenger experience can stir up strong feelings.
Building Team | Jul 7, 2022
Amenity-rich rental property in Chicago includes seven-story atrium with vertical landscaping
The recently opened 198-unit Optima Lakeview luxury rental apartment building in Chicago is bursting with amenities such as the region’s first year-round rooftop pool, contact-free in-home package delivery, housekeeping services, on-site room service, fitness programming, and a virtual personal assistant.