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
| Dec 16, 2013
Helene Combs Dreiling, FAIA, inaugurated 2014 AIA President
Helene Combs Dreiling, FAIA, executive director of the Virginia Center for Architecture, was inaugurated as the 90th president of the American Institute of Architects (AIA) during ceremonies held on December 12th at the Andrew W. Mellon Auditorium. She succeeds Mickey Jacob, FAIA, in representing nearly 83,000 AIA members.
| Dec 13, 2013
GRW acquires West Virginia design firm Chapman Technical Group
GRW is expanding its capabilities through the recent acquisition of Chapman Technical Group, a 36-person West Virginia-based firm.
| Dec 13, 2013
AIA, MIT issue joint report on impact of design on public health
The research looks at the health of eight U.S. cities and lays out a path for translating the research into meaningful findings for policy makers and urban planners.
| Dec 11, 2013
Wyndham unveils hotel prototype for its Hawthorn Suites chain
The extended-stay hotel prototype reduces development costs by 46% for franchisees and enhances the overall guest experience.
| Dec 10, 2013
16 great solutions for architects, engineers, and contractors
From a crowd-funded smart shovel to a why-didn’t-someone-do-this-sooner scheme for managing traffic in public restrooms, these ideas are noteworthy for creative problem-solving. Here are some of the most intriguing innovations the BD+C community has brought to our attention this year.
| Dec 9, 2013
Tips for designing higher education's newest building type: the learning commons
In this era of scaled-down budgets, maximized efficiencies, new learning methods and social media’s domination of face time, college and university campuses are gravitating toward a new space type: the learning commons.
| Dec 9, 2013
Does technology help or hinder innovation?
Whether digital technology will help or hinder workplace insights remains a topic of ongoing debate. FastCo.Design features insights from business scholars on both sides of the issue.
| Dec 6, 2013
French concert hall includes integrated musical elements [VIDEO]
La Métaphone, a concert hall in Ognies, France, is a 1,980-sm facility with the unique characteristic of being a structural musical instrument. The solar-powered building incorporates musical elements in its walls, which can be played by musicians inside or outside the facility.
| Dec 6, 2013
Goettsch Partners selected 2013 AIA Chicago Firm of the Year
Architecture firm Goettsch Partners (GP) has been named the 2013 Firm of the Year, as conferred by the Chicago chapter of the American Institute of Architects (AIA Chicago). The award is the highest honor a firm can receive from the chapter.
| Dec 5, 2013
Maximizing the impact of online marketing
Because most professional services firms exist to help their clients reduce risk and navigate an uncertain future, they tend to approach the world of online or digital marketing with some caution. Here are four tips for maximizing the impact of online marketing.
