The nonresidential building market was hamstrung by weather-related delays during the first part of the 2014, but conditions improved dramatically throughout the rest of the year to finish with greater than anticipated spending levels. The commercial construction sector is now looking at double-digit increases in 2015, led by vigorous levels of demand for hotels and office buildings.
The American Institute of Architects’ (AIA) semi-annual Consensus Construction Forecast, a survey of the nation’s leading construction forecasters, is projecting that spending will see a 7.7% increase in 2015, with next year’s projection nudging up to 8.2%.
VIDEO: Q1 2015 Economic Forecast
“This is the first time since the Great Recession that every major building category is projected to see increases in spending,” said AIA Chief Economist, Kermit Baker, PhD, Hon. AIA. “But by far, the most significant driver that will fuel greater expansion in the marketplace is the revival in the institutional sector, especially with growing demand for new healthcare and education facilities, which alone traditionally account for a third of spending on new building construction.”
Baker continued, “The overall construction industry appears to be on very solid ground for the next two years. That said, uncertainties in international economies, potential labor shortages, lower energy costs, rising interest rates and construction costs all are factors that we will be watching closely to see how they may adversely impact the marketplace.”
Market Segment Consensus Growth Forecasts
Overall nonresidential building
2015: 7.7%
2016: 8.2%
Commercial/industrial
2015: 11.8%
2016: 10.4%
Hotels
2015: 15.3%
2016: 10.4%
Office buildings
2015: 12.9%
2016: 11.5%
Industrial facilities
2015: 10.5%
2016: 10.1%
Retail
2015: 10.1%
2016: 9.0%
Institutional
2015: 5.0%
2016: 5.4%
Amusement/recreation
2015: 9.1%
2016: 5.3%
Education
2015: 4.7%
2016: 5.2%
Healthcare facilities
2015: 4.7%
2016: 6.2%
Public safety
2015: 1.7%
2016: 3.6%
Religious
2015: 1.2%
2016: 3.6%
About the AIA Consensus Construction Forecast Panel
The AIA Consensus Construction Forecast Panel is conducted twice a year with the leading nonresidential construction forecasters in the United States including, McGraw Hill Construction, Wells Fargo Securities, IHS-Global Insight, Moody’s economy.com, Reed Business Information, Associated Builders & Contractors and FMI. The purpose of the Consensus Construction Forecast Panel is to project business conditions in the construction industry over the coming 12 to 18 months. The Consensus Construction Forecast Panel has been conducted for 16 years.
Related Stories
| Aug 11, 2010
The Joule Hotel
Dallas, Texas
The Joule Hotel in Dallas, designed by local firm Coburn & Smith, was constructed in 1927 as the Dallas National Bank Building. Originally one of the finest examples of gothic revival architecture in Texas, it had had most of its gothic elements removed over the years after being converted into an office building and later abandoned. What was left had fallen into disrepair.
| Aug 11, 2010
F&S Partners merges with SmithGroup
F&S Partners, a Dallas architecture firm specializing in the design of educational, recreational, and religious projects, has merged with SmithGroup, a top 10 U.S. architecture/engineering firm. The 40-person office in Dallas will carry the name SmithGroup/F&S.
| Aug 11, 2010
Will Alsop to head up new RMJM studio
Will Alsop, the internationally acclaimed British architect and designer of the Glenwood Waterfront project on the Hudson River, is to turn his attention once again to the U.S. after announcing he is to create a studio called “Will Alsop at RMJM,” as part of the RMJM worldwide architectural firm.
| Aug 11, 2010
AECOM, WATG top BD+C's ranking of the nation's 75 largest hotel design firms
A ranking of the Top 75 Hotel Design Firms based on Building Design+Construction's 2009 Giants 300 survey. For more Giants 300 rankings, visit http://www.BDCnetwork.com/Giants
| Aug 11, 2010
YKK AP launches enerGfacade family of building envelope products
YKK AP America, the leader in manufacturing high quality architectural products, today announced enerGfacade™, its new family of energy-efficient products, as part of the YKK Group’s 50 year anniversary in the architectural products business. The family includes several products, such as Luminance™, ThermaShadeTM and YOW350T.
| Aug 11, 2010
Parsons Brinckerhoff, Dewberry among nation's largest multifamily design firms, according to BD+C's Giants 300 report
A ranking of the Top 75 Multifamily Design Firms based on Building Design+Construction's 2009 Giants 300 survey. For more Giants 300 rankings, visit /giants
| Aug 11, 2010
USGBC’s Greenbuild 2009 brings global ideas to local main streets
Save the planet with indigenous knowledge. Make permanent water part of your life. Dive deep water for clues to environmental success. Connect site selection to successful creative concepting. Explore the unknown with Discovery Channel’s best known guide. These are but a few of the big ideas participants can connect to at USGBC’s Greenbuild International Conference and Expo, taking place on November 11-13, 2009 in Phoenix, Ariz.
| Aug 11, 2010
Goettsch Partners wins design competition for Soochow Securities HQ in China
Goettsch Partners (GP) has been selected as the winning firm in the competition to design the Soochow Securities Headquarters, the new office and stock exchange building for Soochow Securities Co. Ltd. The 21-story, 441,300-square-foot project includes 344,400 square feet of office space, an 86,100-square-foot stock exchange, meeting rooms, classrooms, a cafeteria, and underground parking for 400 cars and 800 bicycles.