Slight increase in nonres construction spending expected in 2012, growth projected for 2013

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

The new elements of the facility now include: efficient lighting with day-lighting controls and occupancy sensors, a high-efficiency HVAC system used in conjunction with a newly constructed thermal envelope to help reduce energy consumption, and the installation of low-flow fixtures to reduce water consumption.

| Feb 26, 2012

Hollister Construction awarded 42,000-sf office fit-out in Holtsville, N.Y.

Space leased by U.S. General Service Administration.

| Feb 26, 2012

Alvarez-Glasman & Colvin’s Chen LEED certified

Chen works closely with property owners to ensure that their properties meet and exceed all industry standards, and also provide long-term energy savings.