Associated Builders and Contractors (ABC) forecasts a steady and ongoing economic recovery for the U.S. commercial and industrial construction industries in 2015. The reasonably brisk industry recovery in 2014 should continue in 2015, with momentum especially growing in segments closely related to the current American energy and industrial production resurgence.
"ABC forecasts nonresidential construction spending will expand by roughly 7.5% next year," said ABC Chief Economist Anirban Basu. "The segments that will experience the largest growth in construction spending in 2015 include power (e.g. natural gas-related construction), lodging (leisure and business spending), office space (professional services employment creation) and manufacturing (rebounding industrial production).
"The public sector will see far more sluggish growth in construction spending," Basu warned. "However, this fits a multi-year pattern with private nonresidential spending exceeding public nonresidential spending by 28% in 2014, up from 15.6 percent in 2013.
"There are always issues, of course, including compensation costs that will rise more quickly per worker next year than in years past," Basu cautioned. "This will be particularly apparent in areas like Louisiana and Northern California, places that have experienced significant economic growth recently. Additionally, while material price inflation has been suppressed, it may accelerate in 2015. Last year, prices were suppressed due to a combination of factors, such as softer growth in most of Europe and Asia, rising energy production here in the U.S., and a stronger dollar. Some of these factors might not be as prominent next year, so the stage could be set for price increases close to 3 percent.
"Taking into account current economic momentum, especially in the form of employment growth, ongoing accommodative monetary policy and increased growth in consumer spending, further stoked by falling gasoline prices, 2015 should be a decent one for the U.S. economy," said Basu. "Contractors should continue to experience a lengthening backlog and the industry should continue to see increases in nonresidential construction spending and employment growth."
Related Stories
| Mar 11, 2011
Renovation energizes retirement community in Massachusetts
The 12-year-old Edgewood Retirement Community in Andover, Mass., underwent a major 40,000-sf expansion and renovation that added 60 patient care beds in the long-term care unit, a new 17,000-sf, 40-bed cognitive impairment unit, and an 80-seat informal dining bistro.
| Mar 11, 2011
Research facility added to Texas Medical Center
Situated on the Texas Medical Center’s North Campus in Houston, the new Methodist Hospital Research Institute is a 12-story, 440,000-sf facility dedicated to translational research. Designed by New York City-based Kohn Pedersen Fox, with healthcare, science, and technology firm WHR Architects, Houston, the building has open, flexible labs, offices, and amenities for use by 90 principal investigators and 800 post-doc trainees and staff.
| Mar 11, 2011
Blockbuster remodel transforms Omaha video store into a bank
A former Hollywood Video store in Omaha, Neb., was renovated and repurposed as the SAC Federal Credit Union, Ames Branch. Architects at Leo A Daly transformed the outdated 5,000-sf retail space into a modern facility by wrapping the exterior in poplar siding and adding a new glass storefront that floods the interior with natural light.
| Mar 11, 2011
Historic McKim Mead White facility restored at Columbia University
Faculty House, a 1923 McKim Mead White building on Columbia University’s East Campus, could no longer support the school’s needs, so the historic 38,000-sf building was transformed into a modern faculty dining room, graduate student meeting center, and event space for visiting lecturers, large banquets, and alumni organizations.
| Mar 11, 2011
Mixed-income retirement community in Maryland based on holistic care
The Green House Residences at Stadium Place in Waverly, Md., is a five-story, 40,600-sf, mixed-income retirement community based on a holistic continuum of care concept developed by Dr. Bill Thomas. Each of the four residential floors houses a self-contained home for 12 residents that includes 12 bedrooms/baths organized around a common living/social area called the “hearth,” which includes a kitchen, living room with fireplace, and dining area.
| Mar 11, 2011
Oregon childhood center designed at child-friendly scale
Design of the Early Childhood Center at Mt. Hood Community College in Gresham, Ore., focused on a achieving a child-friendly scale and providing outdoor learning environments.
| Mar 11, 2011
Guests can check out hotel’s urban loft design, music selection
MODO, Advaya Hospitality’s affordable new lifestyle hotel brand, will have an urban Bauhaus loft design and target design-, music-, and tech-savvy guest who will have access to thousands of tracks in vinyl, CD, and MP3 formats through a partnership with Downtown Music. Guest can create their own playlists, and each guest room will feature iPod docks and large flat-screen TVs.
| Mar 11, 2011
Construction of helicopter hangars in South Carolina gets off the ground
Construction is under way on a $26 million aviation support facility for South Carolina National Guard helicopters. Hendrick Construction, the project’s Charlotte, N.C.-based GC, is building the 111,000-sf Donaldson Hangar facility on the 30-acre South Carolina Technology & Aviation Center, Greenville.
| Mar 11, 2011
Texas A&M mixed-use community will focus on green living
HOK, Realty Appreciation, and Texas A&M University are working on the Urban Living Laboratory, a 1.2-million-sf mixed-use project owned by the university. The five-phase, live-work-play project will include offices, retail, multifamily apartments, and two hotels.
| Mar 11, 2011
Chicago office building will serve tenants and historic church
The Alter Group is partnering with White Oak Realty Partners to develop a 490,000-sf high-performance office building in Chicago’s West Loop. The tower will be located on land owned by Old St. Patrick’s Church (a neighborhood landmark that survived the Chicago Fire of 1871) that’s currently being used as a parking lot.
