Growing at a faster rate than the overall U.S. economy, the nonresidential construction industry is expected to see solid, yet measured, increases in activity this year. High demand for hotels and retail projects have the commercial sector pacing what projects to be a rise in spending this year for nonresidential construction projects of 5.0% – up from a projection of a 4.4% increase in the July 2012 forecast. The American Institute of Architects (AIA) semi-annual Consensus Construction Forecast , a survey of the nation’s leading construction forecasters, also projects a 7.2%% increase of spending in 2014.
“After seeing construction activity seesaw for much of last year, there is a much stronger sense that we have entered a recovery phase and the industry is positioned to see continued economic improvement as we move through year and into 2014,” said AIA Chief Economist, Kermit Baker, PhD, Hon. AIA. “The resurgent housing market has led to a ripple effect where there is a need for more retail establishments and office buildings across the country.”
Remarking on what could undermine this forecast, Baker added, “We can’t truly think the design and construction industry is completely out of the woods until the continued uncertainty over federal budget and debt issues is resolved. This has caused enough anxiety in the real estate marketplace that has resulted in numerous delays and even cancelations of active construction projects. More than one quarter of architecture firms are reporting that this tenuous situation is a tremendous concern to clients and may lead to more delays or project terminations.”
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About the AIA Consensus Construction Forecast Panel
The AIA Consensus Construction Forecast Panel is conducted twice a year with the leading nonresidential construction forecasters in the United States including, McGraw Hill Construction, Wells Fargo Securities, IHS-Global Insight, Moody’s economy.com, Reed Business Information, Associated Builders & Contractors and FMI. The purpose of the Consensus Construction Forecast Panel is to project business conditions in the construction industry over the coming 12 to 18 months. The Consensus Construction Forecast Panel has been conducted for 14 years.
About The American Institute of Architects
Founded in 1857, members of the American Institute of Architects consistently work to create more valuable, healthy, secure, and sustainable buildings, neighborhoods, and communities. Through nearly 300 state and local chapters, the AIA advocates for public policies that promote economic vitality and public well being. Members adhere to a code of ethics and conduct to ensure the highest professional standards. The AIA provides members with tools and resources to assist them in their careers and business as well as engaging civic and government leaders, and the public to find solutions to pressing issues facing our communities, institutions, nation and world. Visit www.aia.org.