Â
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. Â
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%.
Â
Â
Market Segment Consensus Growth Forecasts |
||
| Â | Â | Â |
| Â | 2013 | 2014 |
| Overall nonresidential | 2.30% | 7.60% |
| Â | Â | Â |
| 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% |
| Â | Â | Â |
| 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% |
Â
“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. Â 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 2, 2011
URS acquires Apptis Holdings, a federal IT service provider
SAN FRANCISCO, CA and CHANTILLY, VA– April 28, 2011 – URS Corporation and Apptis Holdings, Inc., a leading provider of information technology and communications services to the federal government, announced that they have signed a definitive agreement under which URS will acquire Apptis.
| May 2, 2011
Perkins+Will merges with Vermeulen Hind Architects, offically launches Perkins+Will Canada
Ottawa and Hamilton-based Vermeulen Hind Architects, one of Canada’s leading healthcare architectural firms, has merged with Perkins+Will. Vermeulen Hind joins Toronto-based Shore Tilbe Perkins+Will and Vancouver-based Busby Perkins+Will to create Perkins+Will Canada. The combination marks the official launch of Perkins+Will Canada, a merge that will establish the firm as among the pre-eminent interdisciplinary design practices in Canada.
| Apr 26, 2011
Ed Mazria on how NYC can achieve carbon neutrality in buildings by 2030
The New York Chapter of the American Institute of Architects invited Mr. Mazria to present a keynote lecture to launch its 2030 training program. In advance of that lecture, Jacob Slevin, co-founder of DesignerPages.com and a contributor to The Huffington Post, interviewed Mazria about creating a sustainable vision for the future and how New York City's architects and designers can rise to the occasion.
| Apr 26, 2011
Video: Are China's ghost cities a bubble waiting to burst?
It's estimated that 10 new cities are being built in China every year, but many are virtually deserted. Retail space remains empty and hundreds of apartments are vacant, but the Chinese government is more concerned with maintaining economic growth—and building cities is one way of achieving that goal.
| Apr 25, 2011
Earn $300 million by NOT hiring Frank Gehry
An Iowa philanthropist and architecture aficionado—who wishes to remain anonymous—is offering a $300 million “reward” to any city anywhere in the world that’s brave enough to hire someone other than Frank Gehry to design its new art museum.
| Apr 20, 2011
Marketing firm Funtion: to host “Construct. Build. Evolve.”
Function:, an integrated marketing agency that specializes in reaching the architecture, building and design community, is hosting an interactive art event, “Construct. Build. Evolve.” in Atlanta’s Piedmont Park on Thursday April 21, 2011 at 11:00AM EDT. During the event attendees will be asked to answer the question, “how would you build the future?” to rouse dialogue and discover fresh ideas for the future of the built environment.
| Apr 20, 2011
Architecture Billings Index: new projects inquiry index up significantly from February
The American Institute of Architects (AIA) reported the March ABI score was 50.5, a negligible decrease from a reading of 50.6 the previous month. This score reflects a modest increase in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 58.7, up significantly from a mark of 56.4 in February.
| Apr 19, 2011
What are the 15 most-watched construction and engineering stocks?
According to Motley Fool, a multimedia financial services company, the most-watched construction and engineering stock is Fluor (NYSE: FLR), which ranks #1 on BD+C’s Giants 300 engineering list with $1.994 billion in revenue in 2009. Check out the 14 other most-watched A/E stocks.
| Apr 19, 2011
AIA announces top 10 green Projects for 2011
The American Institute of Architects Committee on the Environment announced its Top 10 Green Projects for 2011. Among the winners: Cherokee Studios in Los Angeles, the Department of Energy's National Renewable Energy Laboratory in Golden, Colo., and the Vancouver Convention Centre West in Vancouver, British Columbia.
