Despite the lingering effects of an over-built housing market, the continued difficulty to obtain financing for real estate projects, budget shortfalls at state and municipal governments and the anxiety surrounding the prolonged European debt crisis, there are signs that the U.S. design and construction industry will be improving.
Corporate profits have returned to pre-recession levels and businesses have subsequently been increasing their capital spending, borrowing costs are at record low levels and pent up demand for commercial and retail projects factors into what projects to be a 2.1% rise in spending this year for nonresidential construction projects.
The American Institute of Architects (AIA) semi-annual Consensus Construction Forecast, a survey of the nation’s leading construction forecasters, also projects a 6.4% increase of spending in 2013.
“Spending on hotels, industrial plants and commercial properties are going to set the pace for the construction industry over the next two years,” said AIA Chief Economist, Kermit Baker, PhD, Hon. AIA. “The institutional market won’t experience the same growth, but healthcare facilities and places of worship are poised for a positive economic outlook in that sector.”
Market Segment Consensus Growth Forecasts |
2012 |
2013 |
Overall nonresidential |
2.1% |
6.4% |
Commercial / industrial |
5.6% |
11.4% |
Hotels |
10.2% |
19.7% |
Industrial |
6.0% |
10.2% |
Retail |
5.0% |
9.9% |
Office buildings |
4.3% |
9.6% |
Institutional |
-0.1% |
3.6% |
Religious |
5.1% |
6.3% |
Healthcare facilities |
4.5% |
5.3% |
Amusement / recreation |
0.2% |
6.5% |
Education |
-1.7% |
3.1% |
Public safety |
-3.8% |
0.3% |
Remarking on what could derail a positive turnaround, Baker added, “We are concerned that the unusually high energy costs, given the overall weakness in the economy, might trigger a jolt in inflation and hamstring economic recovery. The housing market also needs prices to stabilize and to resolve the high number of delinquencies and foreclosures before it can fully recover.” BD+C
Related Stories
Architects | Mar 5, 2019
Arata Isozaki named 2019 Pritzker Architecture Prize Laureate
The Japanese architect, city planner, and theorist is known for his deep commitment to the “art of space” and transnational methodology.
Education Facilities | Feb 25, 2019
Fallingwater Institute’s summer residency programs have a new educational hub
Bohlin Cywinski Jackson designed the project.
Architects | Feb 14, 2019
Amazon will not build HQ2 in New York City
The tech giant walks away from a deal, succumbing to opposition over huge tax breaks.
Architects | Feb 12, 2019
The basics of building commissioning
As building system technology increases in complexity and sustainability remains at the forefront of design, the need for commissioning continues to rise. This is the first post in our series examining the basics, benefits and boundaries of building commissioning.
Architects | Jan 28, 2019
9 tech trends to track in 2019
Innovations in voice recognition, cognitive neuroscience, and biometrics are among the trending tech topics for 2019, according to CallisonRTKL's Kristin Tilley.
AEC Tech | Jan 9, 2019
Our robotic future: Assessing AI's impact on the AEC profession and the built environment
This is the first in a series by Lance Hosey, FAIA, on how automation is disrupting design and construction.
Architects | Dec 17, 2018
New toolkit helps architect achieve high-performance buildings
Architects can download a copy of the toolkit online.
Architects | Dec 13, 2018
Social media synergy: Revving up your AEC firm’s content engine
Design firms know that just having a website and a blog aren’t enough, but social media complicates how they communicate.
Architects | Dec 10, 2018
The art and science of drawing: Humanizing the design process with a bit of controlled mayhem
Hand drawing reveals a dimension beyond those available in a CAD drawing or digital rendering.
Architects | Dec 7, 2018
2019 AIA Gold Medal awarded to Lord Richard Rogers, Hon. FAIA
The Gold Medal honors an individual whose significant body of work has had a lasting influence on the theory and practice of architecture.