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
Office Buildings | Jun 15, 2023
An office building near DFW Airport is now home to two Alphabet companies
A five-minute drive from the Dallas-Fort Worth International Airport, the recently built 2999 Olympus is now home to two Alphabet companies: Verily, a life sciences business, and Wing, a drone delivery company. Verily and Wing occupy the top floor (32,000 sf and 4,000 sf, respectively) of the 10-story building, located in the lakeside, work-life-play development of Cypress Waters.
Transit Facilities | Jun 15, 2023
Arlington, Va., transit station will support zero emissions bus fleet
Arlington (Va.) Transit’s new operations and maintenance facility will support a transition of their current bus fleet to Zero Emissions Buses (ZEBs). The facility will reflect a modern industrial design with operational layouts to embrace a functional aesthetic. Intuitive entry points and wayfinding will include biophilic accents.
Urban Planning | Jun 15, 2023
Arizona limits housing projects in Phoenix area over groundwater supply concerns
Arizona will no longer grant certifications for new residential developments in Phoenix, it’s largest city, due to concerns over groundwater supply. The announcement indicates that the Phoenix area, currently the nation’s fastest-growing region in terms of population growth, will not be able to sustain its rapid growth because of limited freshwater resources.
Multifamily Housing | Jun 15, 2023
Alliance of Pittsburgh building owners slashes carbon emissions by 45%
The Pittsburgh 2030 District, an alliance of property owners in the Pittsburgh area, says that it has reduced carbon emissions by 44.8% below baseline. Begun in 2012 under the guidance of the Green Building Alliance (GBA), the Pittsburgh 2030 District encompasses more than 86 million sf of space within 556 buildings.
Industry Research | Jun 15, 2023
Exurbs and emerging suburbs having fastest population growth, says Cushman & Wakefield
Recently released county and metro-level population growth data by the U.S. Census Bureau shows that the fastest growing areas are found in exurbs and emerging suburbs.
Healthcare Facilities | Jun 14, 2023
Design considerations for behavioral health patients
The surrounding environment plays a huge role in the mental state of the occupants of a space, especially behavioral health patients whose perception of safety can be heightened. When patients do not feel comfortable in a space, the relationships between patients and therapists are negatively affected.
Engineers | Jun 14, 2023
The high cost of low maintenance
Walter P Moore’s Javier Balma, PhD, PE, SE, and Webb Wright, PE, identify the primary causes of engineering failures, define proactive versus reactive maintenance, recognize the reasons for deferred maintenance, and identify the financial and safety risks related to deferred maintenance.
University Buildings | Jun 14, 2023
Calif. State University’s new ‘library-plus’ building bridges upper and lower campuses
A three-story “library-plus” building at California State University, East Bay (CSUEB) that ties together the upper and lower campuses was recently completed. The 100,977-sf facility, known as the Collaborative Opportunities for Research & Engagement (“CORE”) Building, is one of the busiest libraries in the CSU system. The previous library served 1.2 million visitors annually.
Higher Education | Jun 14, 2023
Designing higher education facilities without knowing the end users
A team of architects with Page offers five important factors to consider when designing spaces for multiple—and potentially changing—stakeholders.
Resiliency | Jun 14, 2023
HUD offers $4.8 billion in funding for green and resilient building retrofit projects
The Department of Housing and Urban Development (HUD) recently released guidelines for its Green and Resilient Retrofit Program (GRRP) that has $4.8 billion for funding green projects.
