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
Architects | Nov 2, 2021
What rugby can teach us about designing the workspace of the future
Two veteran workplace designers offer a sports-based analogy for designing agile spaces to meet the needs of an evolving workforce.
Adaptive Reuse | Nov 1, 2021
CallisonRTKL explores converting decommissioned cruise ships for housing
The rapid increase in cruise ship decommissioning during the last 18 months has created a unique opportunity to innovate and adapt these large ships.
Sustainability | Oct 28, 2021
Reducing embodied carbon in construction, with sustainability leader Sarah King
Sustainability leader Sarah King explains how developers and contractors can use the new EC3 software tool to reduce embodied carbon in their buildings.
Cladding and Facade Systems | Oct 26, 2021
14 projects recognized by DOE for high-performance building envelope design
The inaugural class of DOE’s Better Buildings Building Envelope Campaign includes a medical office building that uses hybrid vacuum-insulated glass and a net-zero concrete-and-timber community center.
AEC Tech | Oct 25, 2021
Token Future: Will NFTs revolutionize the design industry?
How could non-fungible tokens (NFTs) change the way we value design? Woods Bagot architect Jet Geaghan weighs risk vs. reward in six compelling outcomes.
Giants 400 | Oct 22, 2021
2021 Retail Giants: Top architecture, engineering, and construction firms in the U.S. retail building sector
Gensler, CallisonRTKL, Kimley-Horn, and Whiting-Turner top BD+C's rankings of the nation's largest retail sector architecture, engineering, and construction firms, as reported in the 2021 Giants 400 Report.
Giants 400 | Oct 22, 2021
2021 Industrial Sector Giants: Top architecture, engineering, and construction firms in the U.S. industrial buildings sector
Ware Malcomb, Clayco, Jacobs, and Stantec top BD+C's rankings of the nation's largest industrial buildings sector architecture, engineering, and construction firms, as reported in the 2021 Giants 400 Report.
| Oct 22, 2021
The Next Chapter For 147-Year-Old Shepley Bulfinch
Boston-based architecture, planning, and interior design firm Shepley Bulfinch recently named Angela Watson, FAIA, as its President and CEO. Watson sat down with BD+C's John Caulfield to discuss her strategic plan, which emphasizes perspective and collaboration.
Giants 400 | Oct 22, 2021
2021 Airport Sector Giants: Top architecture, engineering, and construction firms in the U.S. airport facilities sector
AECOM, Hensel Phelps, PGAL, and Gensler top BD+C's rankings of the nation's largest airport sector architecture, engineering, and construction firms, as reported in the 2021 Giants 400 Report.
Giants 400 | Oct 22, 2021
2021 Sports Facilities Giants: Top architecture, engineering, and construction firms in the U.S. sports and recreation facility sector
AECOM, Populous, Kimley-Horn, and HOK top BD+C's rankings of the nation's largest sports and recreation facility sector architecture, engineering, and construction firms, as reported in the 2021 Giants 400 Report.