Despite the lingering effects of an over-built housing market, the continued difficulty to obtain financing for real estate projects, budget shortfalls at state and municipal governments and the anxiety surrounding the prolonged European debt crisis, there are signs that the U.S. design and construction industry will be improving.
Corporate profits have returned to pre-recession levels and businesses have subsequently been increasing their capital spending, borrowing costs are at record low levels and pent up demand for commercial and retail projects factors into what projects to be a 2.1% rise in spending this year for nonresidential construction projects.
The American Institute of Architects (AIA) semi-annual Consensus Construction Forecast, a survey of the nation’s leading construction forecasters, also projects a 6.4% increase of spending in 2013.
“Spending on hotels, industrial plants and commercial properties are going to set the pace for the construction industry over the next two years,” said AIA Chief Economist, Kermit Baker, PhD, Hon. AIA. “The institutional market won’t experience the same growth, but healthcare facilities and places of worship are poised for a positive economic outlook in that sector.”
|
Market Segment Consensus Growth Forecasts |
2012 |
2013 |
|
Overall nonresidential |
2.1% |
6.4% |
|
Commercial / industrial |
5.6% |
11.4% |
|
Hotels |
10.2% |
19.7% |
|
Industrial |
6.0% |
10.2% |
|
Retail |
5.0% |
9.9% |
|
Office buildings |
4.3% |
9.6% |
|
Institutional |
-0.1% |
3.6% |
|
Religious |
5.1% |
6.3% |
|
Healthcare facilities |
4.5% |
5.3% |
|
Amusement / recreation |
0.2% |
6.5% |
|
Education |
-1.7% |
3.1% |
|
Public safety |
-3.8% |
0.3% |
Remarking on what could derail a positive turnaround, Baker added, “We are concerned that the unusually high energy costs, given the overall weakness in the economy, might trigger a jolt in inflation and hamstring economic recovery. The housing market also needs prices to stabilize and to resolve the high number of delinquencies and foreclosures before it can fully recover.” BD+C
Related Stories
| Aug 11, 2010
Gensler, HOK, HDR among the nation's leading reconstruction design firms, according to BD+C's Giants 300 report
A ranking of the Top 100 Reconstruction 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
Gensler, Arup, HOK among the largest office sector design firms
A ranking of the Top 100 Office 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
Callison strengthens retail design presence with RYA acquisition
Callison LLC on June 1 acquired RYA Design Consultancy, a Dallas-based retail architecture and design firm with offices in New York City. The new “Callison RYA Studio” will merge staff and clients into Callison ’s existing retail practice at their Dallas and New York offices.
| Aug 11, 2010
Prism-shaped design unveiled for five-star hotel in Saudi Arabia
Goettsch Partners has been commissioned by Saudi Oger Ltd. to design a new five-star, 214-key business hotel in the King Abdullah Financial District in Riyadh, Saudi Arabia. As a design-build assignment, Saudi Oger is serving as the contractor, selected by developer Rayadah Investment Company. The project is sited on Parcel 1.08, one of the first 10 parcels currently under development in the massive new master-planned district.
| Aug 11, 2010
Construction Specifications Institute to end support of MasterFormat 95 on December 31, 2009
The Construction Specifications Institute (CSI) announced that the organization will cease to license and support MasterFormat 95 as of December 31, 2009. The CSI Board of Directors voted to stop licensing and supporting MasterFormat 95 during its June 16, 2009, meeting at the CSI Annual Convention in Indianapolis.
| Aug 11, 2010
Gensler among eight teams named finalists in 'classroom of the future' design competition
Eight teams were recognized today as finalists of the 2009 Open Architecture Challenge: Classroom. Finalists submitted designs ranging from an outdoor classroom for children in inner-city Chicago, learning spaces for the children of salt pan workers in India, safe spaces for youth in Bogota, Colombia and a bamboo classroom in the Himalayan mountains.
| 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.
