Even with the myriad of obstacles preventing a full scale recovery for the overall U.S. economy, the design and construction industry appears to have reasons to be at least modestly optimistic in the coming months and into next year.
A sharp spike in demand for industrial facilities so far this year, along with sustained demand for hotels and retail projects factors into what projects to be a 4.4% rise in spending this year for nonresidential construction projects – up from a projection of a 2.1% increase in the January Consensus Forecast.
The American Institute of Architects (AIA) semi-annual Consensus Construction Forecast, a survey of the nation’s leading construction forecasters, also projects a 6.2% increase of spending in 2013.
“With companies looking to bring back manufacturing jobs from overseas, there has been a sharp rise in demand for industrial facilities, which is leading to an upward revision in projections for future construction spending,” said AIA Chief Economist, Kermit Baker, PhD, Hon. AIA. “Continued budget shortfalls at the state and local level, along with a depressed municipal bond market are holding the institutional market back from seeing similar upticks in spending.”
|
Market Segment Consensus Growth Forecasts |
2012 |
2013 |
|
Overall nonresidential |
4.4% |
6.20% |
|
Commercial / industrial |
5.7% |
10.20% |
|
Industrial |
12.9% |
8.10% |
|
Hotels |
9.5% |
18.20% |
|
Retail |
6.2% |
9.00% |
|
Office buildings |
4.7% |
8.70% |
|
Institutional |
0.7% |
3.00% |
|
Healthcare facilities |
4.0% |
7.50% |
|
Education |
0.3% |
1.10% |
|
Amusement / recreation |
0.1% |
2.30% |
|
Public safety |
0.0% |
0.10% |
|
Religious |
-5.0% |
3.00% |
Remarking on what risks exist that could undermine these projections, Baker added, “Federal tax and spending changes – the so-called fiscal cliff – that may come into play in early 2013 could upset the economic applecart and prove detrimental to recovery possibilities. We will likely have a better sense after the presidential election what will happen with regards to the Bush-era tax cuts, Social Security payroll tax, extended unemployment, and deficit reduction plans that will have a ripple effect that will extend to the construction industry.” +
Related Stories
| Nov 15, 2010
Gilbane to acquire W.G. Mills, Inc.
Rhode Island-based Gilbane Building Company announced plans to acquire W.G. Mills, Inc., a construction management firm with operations based in Florida. The acquisition will dramatically strengthen Gilbane’s position in Florida’s growing market and complement its already established presence in the southeast.
| Nov 11, 2010
Saint-Gobain to make $80 million investment in SAGE Electrochromics
Saint-Gobain, one of the world’s largest glass and construction material manufacturers, is making a strategic equity investment in SAGE Electrochromics to make electronically tintable “dynamic glass” an affordable, mass-market product, ushering in a new era of energy-saving buildings.
| Nov 11, 2010
Saint-Gobain to make $80 million investment in SAGE Electrochromics
Saint-Gobain, one of the world’s largest glass and construction material manufacturers, is making a strategic equity investment in SAGE Electrochromics to make electronically tintable “dynamic glass” an affordable, mass-market product, ushering in a new era of energy-saving buildings.
| Nov 11, 2010
USGBC certifies more than 1 billion square feet of commercial space
This month, the total footprint of commercial projects certified under the U.S. Green Building Council’s LEED Green Building Rating System surpassed one billion square feet. Another six billion square feet of projects are registered and currently working toward LEED certification around the world. Since 2000, more than 36,000 commercial projects and 38,000 single-family homes have participated in LEED.
| Nov 10, 2010
$700 million plan to restore the National Mall
The National Mall—known as America’s front yard—is being targeted for a massive rehab and restoration that could cost as much as $700 million (it’s estimated that the Mall has $400 million in deferred maintenance alone). A few of the proposed projects: refurbishing the Grant Memorial, replacing the Capitol Reflecting Pool with a smaller pool or fountain, reconstructing the Constitution Gardens lake and constructing a multipurpose visitor center, and replacing the Sylvan Theater near the Washington Monument with a new multipurpose facility.
| Nov 9, 2010
Just how green is that college campus?
The College Sustainability Report Card 2011 evaluated colleges and universities in the U.S. and Canada with the 300 largest endowments—plus 22 others that asked to be included in the GreenReportCard.org study—on nine categories, including climate change, energy use, green building, and investment priorities. More than half (56%) earned a B or better, but 6% got a D. Can you guess which is the greenest of these: UC San Diego, Dickinson College, University of Calgary, and Dartmouth? Hint: The Red Devil has turned green.
| Nov 9, 2010
12 incredible objects being made with 3D printers today
BD+C has reported on how 3D printers are attracting the attention of AEC firms. Now you can see how other creative types are utilizing this fascinating printing technology. Among the printed items: King Tut’s remains, designer shoes, and the world’s smallest Rubik’s Cube.
| Nov 9, 2010
U.S. Army steps up requirements for greening building
Cool roofs, solar water heating, and advanced metering are among energy-efficiency elements that will have to be used in new permanent Army buildings in the U.S. and abroad starting in FY 2013. Designs for new construction and major renovations will incorporate sustainable design and development principles contained in ASHRAE 189.1.
