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
| May 2, 2014
World's largest outdoor chandelier tops reworked streetscape for Cleveland's PlayhouseSquare
Streetscape project includes monumental gateway portals, LED signage, and a new plaza, fire pit, sidewalk café, and alfresco dining area.
| May 2, 2014
Norwegian modular project set to be world's tallest timber-frame apartment building [slideshow]
A 14-story luxury apartment block in central Bergen, Norway, will be the world's tallest timber-framed multifamily project, at 49 meters (160 feet).
| May 2, 2014
Top 10 countries for LEED buildings outside the U.S.
The list of the top 10 countries for LEED reflects the global adaptability of the world’s most widely used and recognized system guiding the design, construction, operations and maintenance of green buildings.
| May 1, 2014
First look: Cal State San Marcos's posh student union complex
The new 89,000-sf University Student Union at CSUSM features a massive, open-air amphitheater, student activity center with a game lounge, rooftop garden and patio, and ballroom space.
| May 1, 2014
Super BIM: 7 award-winning BIM/VDC-driven projects
Thom Mayne's Perot Museum of Nature and Science and Anaheim's new intermodal center are among the 2014 AIA TAP BIM Award winners.
| May 1, 2014
Tight on space for multifamily? Check out this modular kitchen tower
The Clei Ecooking kitchen, recently rolled out at Milan's Salone de Mobile furniture fair, squeezes multiple appliances into a tiny footprint.
| May 1, 2014
Chinese spec 'world's fastest' elevators for supertall project
Hitachi Elevator Co. will build and install 95 elevators—including two that the manufacturer labels as the "world's fastest"—for the Kohn Pedersen Fox-designed Guangzhou CTF Finance Center.
| Apr 30, 2014
Visiting Beijing's massive Chaoyang Park Plaza will be like 'moving through a urban forest'
Construction work has begun on the 120,000-sm mixed-use development, which was envisioned by MAD architects as a modern, urban forest.
| Apr 29, 2014
Best of Canada: 12 projects nab nation's top architectural prize [slideshow]
The conversion of a Mies van der Rohe-designed gas station and North Vancouver City Hall are among the recently completed projects to win the 2014 Governor General's Medal in Architecture.
| Apr 29, 2014
USGBC launches real-time green building data dashboard
The online data visualization resource highlights green building data for each state and Washington, D.C.
