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
| Jun 18, 2014
Ware Malcomb names Sorensen Engineering Regional Manager
New hire will oversee firm's civil engineering practice in Los Angeles, San Diego, and Irvine.
| Jun 18, 2014
JLG Architects hires 31 to keep up with 'shale gale' work
Construction boom fueled by 'shale gale' brings rapid growth to North Dakota firm.
| Jun 18, 2014
Arup uses 3D printing to fabricate one-of-a-kind structural steel components
The firm's research shows that 3D printing has the potential to reduce costs, cut waste, and slash the carbon footprint of the construction sector.
| Jun 18, 2014
Architecture Billings Index shows increase in design activity
The American Institute of Architects reported that the May ABI score was 52.6, up sharply from a mark of 49.6 in April. This score reflects an increase in design activity.
| Jun 17, 2014
Must see: If music were architecture in 27 illustrations
From Miles Davis to Björk to Manu Chao to Bach, Babina visualizes how these sounds will look like if they were visible in the form of architecture.
| Jun 17, 2014
Nation's largest Thai Buddhist temple opens near Boston
The $60 million facility built in honor of King Rama IX of Thailand is the largest Thai Buddhist temple outside of Thailand.
| Jun 17, 2014
U.S. Census report examines why Americans move
According to the U.S. Census Bureau, 35.9 million people moved between 2012 and 2013, meaning that 11.7% of the U.S. population moved in one year. The report seeks to examine why.
| Jun 17, 2014
World's tallest pair of towers to serve as 'environmental catalyst' for China
The Phoenix Towers are expected to reach 1 km, the same height as Adrian Smith and Gordon Gill's Kingdom Tower, but would set a record for multiple towers in one development.
| Jun 16, 2014
6 U.S. cities at the forefront of innovation districts
A new Brookings Institution study records the emergence of “competitive places that are also cool spaces.”
| Jun 13, 2014
Gilbane Building Company names new president and chief operating officer
Gilbane Building company hires new president and COO
