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
Codes and Standards | Aug 6, 2015
ConsensusDocs releases new CM agency contract standard agreement
For use when owner acts as the construction manager, hires a construction manager, or uses multiple prime contractors
Giants 400 | Aug 5, 2015
GIANTS 300 REPORT: Top 135 Office Sector Architecture Firms
Gensler, HOK, and Perkins+Will top BD+C's ranking of the nation's largest office sector architecture and architecture/engineering firms.
Giants 400 | Aug 5, 2015
OFFICE SECTOR GIANTS: Today’s workplace design must appeal to Millennials’ ‘activity-based’ lifestyle
Office market AEC Giants discuss the latest trends workplace design, and the state of the office construction sector.
Giants 400 | Aug 5, 2015
GIANTS 300 REPORT: Top 37 Engineering/Architecture Firms
Jacobs, AECOM, and Thornton Tomasetti head Building Design+Construction's 2015 ranking of the largest engineering/architecture firms in the United States.
Giants 400 | Aug 5, 2015
ENGINEERING GIANTS: Profits, revenue on the rise at U.S. engineering firms as economy sputters back to life
The vast majority of engineering firms are decidedly bullish on revenue growth for 2015, and profitability is nearing a six-year high, according to BD+C's 2015 Giants 300 report.
Giants 400 | Aug 4, 2015
GIANTS 300 REPORT: Top 64 Architecture/Engineering Firms
Stantec, HOK, and Callison RTKL top Building Design+Construction's 2015 ranking of the largest architecture/engineering firms in the United States.
Giants 400 | Aug 4, 2015
GIANTS 300 REPORT: Top 106 Architecture Firms
Gensler, Perkins+Will, and Kohn Pedersen Fox top Building Design+Construction's 2015 ranking of the largest architecture firms in the United States.
Giants 400 | Aug 4, 2015
ARCHITECTURE GIANTS: 21 practice management innovations from architecture Giants
Design firms have gone all out with management innovations in the last year. Check out which ones might work for your firm.
Architects | Aug 4, 2015
Frank Lloyd Wright School of Architecture closer to independent incorporation
The school is halfway to its first fundraising milestone, but is facing a major deadline at end of this month.
Industrial Facilities | Aug 3, 2015
Architect Jacques Rougerie envisions floating city to function as roving laboratory
The manta ray-shaped vessel will be completely self-sustaining, run on marine energy, and produce no waste.