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 | Apr 10, 2018
HOK names a physician as its new Chief Medical Officer
Dr. Andrew Ibrahim will collaborate with the firm’s medical planning and design teams.
Architects | Apr 5, 2018
AIA grants $100,000 to four Upjohn Research Initiative projects
The purpose of the grant is to provide base funds for applied research projects that will advance the design profession’s knowledge and practice.
Architects | Apr 5, 2018
Tech Report 5.0: The Human Touch
Can studying humans at a behavioral level produce better buildings? Cognitive architecture experts are working to find out.
Architects | Apr 4, 2018
How to acquire speaking engagements and hone your skills
So, you understand the benefits, but how do you actually get started with speaking engagements?
Architects | Apr 4, 2018
8 things to consider before using digital media to communicate with employees
The Marlin Company, a visual communications and digital signage provider, published a guide that outlines eight basic questions, along with some advice, about workplace digital signage.
Education Facilities | Mar 30, 2018
How can we design safer schools in the age of active shooters?
How can we balance the need for additional security with design principles that foster a more nurturing next-generation learning environment for students?
Architects | Mar 26, 2018
Designing for homeless facilities: Critical spaces to consider
The City of San Diego is home to the fourth largest homeless population in the U.S.
Education Facilities | Mar 23, 2018
An introvert's oasis: How to create learning environments for all student types
In order to understand why a school day can be so grueling for an introverted student, it’s important to know what it means to be introverted, writes NAC Architecture’s Emily Spiller.
Architects | Mar 22, 2018
The benefits and nuances of integrated design
Achieving integrated design usually means operating under a strong relationship.
Architects | Mar 14, 2018
Becoming nature: The building design evolution meets the living building revolution
With the environmental movement, sustainability became a marker of innovation in design for the built environment.
