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
Giants 400 | Feb 1, 2023
2022 Cultural Facilities Giants: Top architecture, engineering, and construction firms in the U.S. cultural facilities sector
Populous, DLR Group, KPFF, Arup, and Turner Construction head BD+C's rankings of the nation's largest cultural facilities sector architecture, engineering, and construction firms, as reported in the 2022 Giants 400 Report. Building types include museums, public libraries, performing arts centers, and concert venues.
Giants 400 | Jan 31, 2023
2022 Retail Giants: Top architecture, engineering, and construction firms in the U.S. retail building sector
Gensler, CallisonRTKL, Kimley-Horn, Henderson Engineers, Whiting-Turner Contracting, and Turner Construction top BD+C's rankings of the nation's largest retail sector architecture, engineering, and construction firms, as reported in the 2022 Giants 400 Report.
Giants 400 | Jan 31, 2023
2022 Government Sector Giants: Top architecture, engineering, and construction firms in the U.S. government buildings sector
Gensler, Jacobs, Hensel Phelps, and Page top BD+C's rankings of the nation's largest government sector architecture, engineering, and construction firms, as reported in the 2022 Giants 400 Report.
Healthcare Facilities | Jan 31, 2023
How to solve humidity issues in hospitals and healthcare facilities
Humidity control is one of the top mechanical issues healthcare clients face. SSR's Lee Nordholm, PE, LEED AP, offers tips for handling humidity issues in hospitals and healthcare facilities.
University Buildings | Jan 30, 2023
How wellness is reshaping college recreation centers
Moody Nolan, a specialist in the design of college recreation centers, has participated in the evolution toward wellness on college campuses.
Mass Timber | Jan 30, 2023
Net-positive, mass timber building will promote research on planetary well-being in Barcelona
ZGF Architects, along with Barcelona-based firms MIRAG and Double Twist, have designed a net-positive, mass timber center for research on planetary well-being. Located in Barcelona, the Mercat del Peix Research Center will bring together global experts in the experimental sciences, social sciences, and humanities to address challenges related to the future of the planet.
AEC Tech | Jan 27, 2023
Epic Games' latest foray into the AEC market and real estate industry
From architecture to real estate, the realm of computer-aided design hits new heights as more and more firms utilize the power of Epic Games’ Twinmotion and Unreal Engine.
University Buildings | Jan 27, 2023
Ozarks Technical Community College's advanced manufacturing center is first-of-a-kind in region
The new Robert W. Plaster Center for Advanced Manufacturing at Ozarks Technical Community College in Springfield, Mo., is a first-of-a-kind educational asset in the region. The 125,000-sf facility will educate and train a new generation in high tech, clean manufacturing and fabrication.
Mass Timber | Jan 27, 2023
How to set up your next mass timber construction project for success
XL Construction co-founder Dave Beck shares important preconstruction steps for designing and building mass timber buildings.
Sports and Recreational Facilities | Jan 26, 2023
Miami’s motorsport ‘country club’ to build sleek events center
Designed by renowned Italian design firm Pininfarina and with Revuelta as architect, The Event Campus at The Concours Club will be the first and only motorsport-based event campus located within minutes of a major metro area.
