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
Reconstruction & Renovation | Aug 9, 2016
Renascent architecture: Demolished Frank Lloyd Wright structures get new life
The Frank Lloyd Wright Revival Initiative is set to begin its reconstruction efforts with the Banff Pavilion, which was demolished in 1939.
Building Team | Aug 4, 2016
Thought leaders from architecture, engineering and construction to meet at 2016 Bluebeam eXtreme Conference
Bluebeam users inspire technological change through shared insights and training at three-day event.
| Aug 4, 2016
MULTIFAMILY BUILDING GIANTS: Rental complexes focus on affordability, accessibility, and specialty amenities
To address the affordability problem and attract tenants, owners and developers are experimenting with smaller and smaller units, amenity-rich environments, and “co-living” concepts.
| Aug 4, 2016
Top 110 Multifamily Architecture Firms
Perkins Eastman, CallisonRTKL, and Solomon Cordwell Buenz top Building Design+Construction’s annual ranking of the nation’s largest multifamily building sector architecture and A/E firms, as reported in the 2016 Giants 300 Report.
| Aug 3, 2016
GREEN BUILDING GIANTS: Sustainability leaders turn to wellness and technology to get an edge
AEC leaders in green building are stepping up to a higher level of innovation and to be a green leader today, you have to dig deeper into data.
| Aug 2, 2016
Top 130 Green Building Architecture Firms
Gensler, Stantec, and HOK top Building Design+Construction’s annual ranking of the nation’s largest green building sector architecture and A/E firms, as reported in the 2016 Giants 300 Report.
Architects | Aug 2, 2016
Bradley Lukanic named CannonDesign's CEO
In his new role, Lukanic takes helm of an experienced leadership team crafting and achieving optimal short- and long-term strategies and business outcomes
| Aug 1, 2016
K-12 SCHOOL GIANTS: In a new era of K-12 education, flexibility is crucial to design
Space flexibility is critical to classroom design. Spaces have to be adaptable, even allowing for drastic changes such as a doubling of classroom size.
| Jul 29, 2016
AIRPORT FACILITIES GIANTS: Airports binge on construction during busy year for travel
Terminal construction will grow by nearly $1 billion this year, and it will keep increasing. Airports are expanding and modernizing their facilities to keep passengers moving.
| Jul 29, 2016
Top 35 Airport Terminal Architecture and A/E Firms
Corgan, HOK, and Gensler top Building Design+Construction’s annual ranking of the nation’s largest airport terminal architecture and A/E firms, as reported in the 2016 Giants 300 Report.