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
| Aug 14, 2014
Museum of Mayan Culture draws inspiration from temple design [slideshow]
The Museo Maya de América in Guatemala City will be the world’s largest museum of Mayan history and culture, at 60,000 sf.
| Aug 14, 2014
How workplace design can empower employees, businesses
Focusing on recent work at Follett and Zurich, CannonDesign’ Meg Osman reveals the power of research, strategy, change management, and measurement to transform businesses for the better.
| Aug 13, 2014
UIA commits to phasing out CO2 emissions in built environment
The International Union of Architects, representing approximately 2.3 million architects worldwide, has unanimously adopted the 2050 Imperative committing to environmental and social sustainability.
| Aug 13, 2014
ADD Inc. to merge with Stantec
The deal, which helps Stantec strengthen its capabilities in the buildings business on the East Coast, is expected to close in September.
| Aug 13, 2014
Campus UX: Why universities should be creating 'branded environments' on campus
When most colleges and universities consider their brands, they rarely venture beyond the design and implementation of a logo, writes Gensler Design Director Brian Brindisi.
| Aug 12, 2014
Vietnam's 'dragonfly in the sky' will be covered in trees, vegetation
Designed by Vietnamese design firm Vo Trong Nghia Architects, the building will be made up of stacked concrete blocks placed slightly askew to create a soft, organic form that the architects say is reminiscent of a dragonfly in the sky.
| Aug 12, 2014
First look: Calatrava's futuristic Main Building opens at Florida Polytechnic University
The $60 million structure is wrapped in a bright-white, aluminum pergola for dramatic effect and solar shading.
| Aug 12, 2014
Shading prototype could allow new levels of environmental control for skyscraper occupants
Developed by architects at NBBJ, Sunbreak uses a unique three-hinged shade that morphs from an opaque shutter to an abstract set of vertical blinds to an awning, depending on what is needed.
| Aug 12, 2014
Design firms invited to submit qualifications for St. Petersburg, Fla., waterfront project
The city of St. Petersburg, Fla., invites firms to submit their ideas for a new and improved pier for Florida's fifth largest city.
| Aug 11, 2014
Air Terminal Sector Giants: Morphing TSA procedures shape terminal design [2014 Giants 300 Report]
The recent evolution of airport terminals has been prompted largely by different patterns of passenger behavior in a post-9/11 world, according to BD+C's 2014 Giants 300 Report.
