Associated Builders and Contractors (ABC) Chief Economist Anirban Basu, American Institute of Architects (AIA) Chief Economist Kermit Baker and National Association of Home Builders (NAHB) Chief Economist Robert Dietz predicted continued growth for the construction industry in 2017 during a joint economic forecast this week (download the PDF slidedeck; watch the archived presentation).
Each economist discussed leading, present, and future indicators for sector performance, including ABC’s Construction Backlog Indicator (CBI), AIA’s latest Architecture Billings Index (ABI) and Construction Consensus Forecast, and the NAHB/Wells Fargo Housing Market Index (HMI).
The economists’ comments can be read below.
Anirban Basu, ABC Chief Economist: "Nonresidential construction spending growth will continue into the next year with an estimated increase in the range of 3 to 4 percent. Growth will continue to be led by privately financed projects, with commercial construction continuing to lead the way. Energy-related construction will become less of a drag in 2017, while public spending will continue to be lackluster."
Robert Dietz, NAHB Chief Economist: "Our forecast shows single-family production expanding by more than 10 percent in 2016, and the robust multifamily sector leveling off. Historically low mortgage interest rates and favorable demographics should keep the housing market moving forward at a gradual pace, but residential construction growth will be constrained by shortages of labor and lots and rising regulatory costs."
Kermit Baker, AIA Chief Economist: "Revenue at architecture firms continues to grow, so prospects for the construction industry remain solid over the next 12 to 18 months. Given current demographic trends, the single-family residential and the institutional building sectors have the greatest potential for further expansion at present."
Related Stories
Coronavirus | Mar 20, 2020
Pandemic has halted or delayed projects for 28% of contractors
Coronavirus-caused slowdown contrasts with January figures showing a majority of metro areas added construction jobs; Officials note New infrastructure funding and paid family leave fixes are needed.
Market Data | Mar 17, 2020
Construction spending to grow modestly in 2020, predicts JLL’s annual outlook
But the coronavirus has made economic forecasting perilous.
Market Data | Mar 16, 2020
Grumman/Butkus Associates publishes 2019 edition of Hospital Benchmarking Survey
Report examines electricity, fossil fuel, water/sewer, and carbon footprint.
Market Data | Mar 12, 2020
New study from FMI and Autodesk finds construction organizations with the highest levels of trust perform twice as well on crucial business metrics
Higher levels of trust within organizations and across project teams correlate with increased profit margins, employee retention and repeat business that can all add up to millions of dollars of profitability annually.
Market Data | Mar 11, 2020
The global hotel construction pipeline hits record high at 2019 year-end
Projects currently under construction stand at a record 991 projects with 224,354 rooms.
Market Data | Mar 6, 2020
Construction employment increases by 43,000 in February and 223,000 over 12 months
Average hourly earnings in construction top private sector average by 9.9% as construction firms continue to boost pay and benefits in effort to attract and retain qualified hourly craft workers.
Market Data | Mar 4, 2020
Nonresidential construction spending attains all-time high in January
Private nonresidential spending rose 0.8% on a monthly basis and is up 0.5% compared to the same time last year.
Market Data | Feb 21, 2020
Construction contractor confidence remains steady
70% of contractors expect their sales to increase over the first half of 2020.
Market Data | Feb 20, 2020
U.S. multifamily market gains despite seasonal lull
The economy’s steady growth buoys prospects for continued strong performance.
Market Data | Feb 19, 2020
Architecture billings continue growth into 2020
Demand for design services increases across all building sectors.