FMI released the first-quarter 2012 Construction Outlook Report forecasting a 5% increase in total construction put in place for 2012 compared to 2011, or $826.3 billion. The last time construction put in place was at this level was 2000-2001.
Despite slow growth projections and rising gasoline prices, the GDP is still growing and consumers are still spending, reflected in the Conference Board's Consumer Confidence Index increasing to 70.8 in February compared to 70.4 a year ago. Along with the Federal Reserve's intervention, these factors have served to keep growth slow and inflation in check.
In order for residential construction to achieve the 8 percent increase projected and top $264.4 billion in 2012, a number of factors still have to fall into place:
- Reduction in the current inventory of homes
- Lenders willing to lend on reasonable terms
- Steady improvement in hiring
Projections indicate a 4% increase in nonresidential buildings for 2012, topping $341 billion, with slightly higher growth in 2013 to $361 billion. Nonresidential contractors are facing many of the same problems as residential contractors. In addition, competition is fierce, with low price still the name of the game. Project owners who are ready to restart their building programs are expecting hungry contractors to submit very low bids. One of the keys for growth will be the return of private investment in construction. Additionally, federal, state and local government construction have been dialed back until budgets are in better repair and tax revenues return to levels that are more normal. Research indicates that there are signs this is starting to happen. BD+C
Related Stories
Regulations | Oct 4, 2023
New York adopts emissions limits on concrete
New York State recently adopted emissions limits on concrete used for state-funded public building and transportation projects. It is the first state initiative in the U.S. to enact concrete emissions limits on projects undertaken by all agencies, according to a press release from the governor’s office.
Architects | Oct 4, 2023
Architects and contractors underestimate cyberattack risk
Design and construction industry firms underestimate their vulnerability to cyberattacks, according to a new report, Data Resilience in Design and Construction: How Digital Discipline Builds Stronger Firms by Dodge Construction Network and content security and management company Egnyte.
Luxury Residential | Oct 2, 2023
Chicago's Belden-Stratford luxury apartments gets centennial facelift
The Belden-Stratford has reopened its doors following a renovation that blends the 100-year-old building’s original architecture with modern residences.
Giants 400 | Oct 2, 2023
Top 30 Data Center Architecture Firms for 2023
Corgan, HDR, Gensler, Page Southerland Page, and HED top BD+C's ranking of the nation's largest data center sector architecture and architecture/engineering (AE) firms for 2023, as reported in Building Design+Construction's 2023 Giants 400 Report.
Market Data | Oct 2, 2023
Nonresidential construction spending rises 0.4% in August 2023, led by manufacturing and public works sectors
National nonresidential construction spending increased 0.4% in August, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.09 trillion.
K-12 Schools | Oct 2, 2023
4 design strategies for successful K-12 magnet schools
Clark Nexsen's Donna Francis, AIA, Principal, and Becky Brady, AIA, share four reasons why diverse K-12 magnet schools require diverse design.
Architects | Sep 28, 2023
Nashville architecture firm ESa adds 14 principals
ESa has announced that 14 new principals have been added to the firm’s leadership. “As ESa continues to grow, we are excited to celebrate our newest ESa principals. These individuals embody the characteristics of a quality leader and have shown great leadership in client and team member relationships, project management and mentoring roles,” said Kevin Harney, ESa vice president and principal.
Construction Costs | Sep 28, 2023
U.S. construction market moves toward building material price stabilization
The newly released Quarterly Construction Cost Insights Report for Q3 2023 from Gordian reveals material costs remain high compared to prior years, but there is a move towards price stabilization for building and construction materials after years of significant fluctuations. In this report, top industry experts from Gordian, as well as from Gilbane, McCarthy Building Companies, and DPR Construction weigh in on the overall trends seen for construction material costs, and offer innovative solutions to navigate this terrain.
University Buildings | Sep 27, 2023
Top 170 University Building Architecture Firms for 2023
Gensler, CannonDesign, Page Southerland Page, SmithGroup, and Ayers Saint Gross top the ranking of the nation's largest university sector architecture and architecture/engineering (AE) firms, as reported in Building Design+Construction's 2023 Giants 400 Report.
Affordable Housing | Sep 25, 2023
3 affordable housing projects that serve as social catalysts
Trish Donnally, Associate Principal, Perkins Eastman, shares insights from three transformative affordable housing projects.
