Entering the second quarter of 2022, FMI expects construction spending to end 2022 up 7% compared to up 8% in 2021. But that growth will be offset by inflation, supply chain snarls, a shortage of workers, project delays and economic turmoil caused by international events such as the Russia-Ukraine war, according to FMI's 2022 North American Engineering and Construction Outlook Second Quarter Edition.
Key highlights of the report include:
- Strong investment in residential and manufacturing will drive industry spending through 2022.
- Due to expected increases in infrastructure funding later this year, several nonbuilding segments, including highway and street, sewage and waste disposal and water supply, are all anticipated to realize growth rates of more than 5% in 2022.
- Year-end 2022 growth will be tempered by ongoing spending declines across various nonresidential building segments, including lodging, office, educational, religious, public safety and amusement and recreation.
- Commercial, health care, communication, power and conservation and development are all expected to end the year with low growth, roughly in line with the historical rate of inflation, between 0% and 4%, and are therefore considered stable.
Download the free PDF report (short registration required).
Related Stories
Market Data | Nov 30, 2020
New FEMA study projects implementing I-Codes could save $600 billion by 2060
International Code Council and FLASH celebrate the most comprehensive study conducted around hazard-resilient building codes to-date.
Market Data | Nov 23, 2020
Construction employment is down in three-fourths of states since February
This news comes even after 36 states added construction jobs in October.
Market Data | Nov 18, 2020
Architecture billings remained stalled in October
The pace of decline during October remained at about the same level as in September.
Market Data | Nov 17, 2020
Architects face data, culture gaps in fighting climate change
New study outlines how building product manufacturers can best support architects in climate action.
Market Data | Nov 10, 2020
Construction association ready to work with president-elect Biden to prepare significant new infrastructure and recovery measures
Incoming president and congress should focus on enacting measures to rebuild infrastructure and revive the economy.
Market Data | Nov 9, 2020
Construction sector adds 84,000 workers in October
A growing number of project cancellations risks undermining future industry job gains.
Market Data | Nov 4, 2020
Drop in nonresidential construction offsets most residential spending gains as growing number of contractors report cancelled projects
Association officials warn that demand for nonresidential construction will slide further without new federal relief measures.
Market Data | Nov 2, 2020
Nonresidential construction spending declines further in September
Among the sixteen nonresidential subcategories, thirteen were down on a monthly basis.
Market Data | Nov 2, 2020
A white paper assesses seniors’ access to livable communities
The Joint Center for Housing Studies and AARP’s Public Policy Institute connect livability with income, race, and housing costs.
Market Data | Nov 2, 2020
More contractors report canceled projects than starts, survey finds
Construction employment declined in most metros in latest 12 months.
