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
| May 1, 2013
A LEGO lover's dream: Guide to building the world's iconic structures with LEGO
A new book from LEGO master builder Warren Elsmore offers instructions for creating scale models of buildings and landmarks with LEGO.
| May 1, 2013
New AISC competition aims to shape the future of steel
Do you have the next great idea for a groundbreaking technology, model shop or building that could potentially revolutionize the future of the steel design and construction industry? Enter AISC's first-ever Future of Steel competition.
| May 1, 2013
Data center construction remains healthy, but oversupply a concern
Facebook, Amazon, Microsoft, and Google are among the major tech companies investing heavily to build state-of-the-art data centers.
| May 1, 2013
Groups urge Congress: Keep energy conservation requirements for government buildings
More than 350 companies urge rejection of special interest efforts to gut key parts of Energy Independence and Security Act
| May 1, 2013
World’s tallest children’s hospital pushes BIM to the extreme
The Building Team for the 23-story Lurie Children’s Hospital in Chicago implements an integrated BIM/VDC workflow to execute a complex vertical program.
| Apr 30, 2013
Healthcare lighting innovation: Overhead fixture uses UV to kill airborne pathogens
Designed specifically for hospitals, nursing homes, child care centers, and other healthcare facilities where infection control is a concern, the Arcalux Health Risk Management System (HRMS) is an energy-efficient lighting fixture that doubles as a germ-killing machine.
| Apr 30, 2013
First look: North America's tallest wooden building
The Wood Innovation Design Center (WIDC), Prince George, British Columbia, will exhibit wood as a sustainable building material widely availablearound the globe, and aims to improve the local lumber economy while standing as a testament to new construction possibilities.
| Apr 26, 2013
Apple scales back Campus 2 plans to reduce price tag
Apple will delay the construction of a secondary research and development building on its "spaceship" campus in an attempt to drive down the cost of developing its new headquarters.
| Apr 26, 2013
Documentary shows 'starchitects' competing for museum project
"The Competition," a new documentary produced by Angel Borrego Cuberto of Madrid, focuses on the efforts of five 'starchitects' to capture the design contract for the new National Museum of Art of Andorra: a small country in the Pyrenees between Spain and France.
| Apr 26, 2013
Solving the parking dilemma in U.S. cities
ArchDaily's Rory Stott yesterday posted an interesting exploration of progressive parking strategies being employed by cities and designers. The lack of curbside and lot parking exacerbates traffic congestion, discourages visitors, and leads to increased vehicles emissions.