Nonresidential construction poised for more growth in 2016
Construction spending greatly exceeded expectations in the nonresidential market in 2015, and 2016 should see healthy growth levels as well, industry analysts predict. The reason: Continuing significant demand for hotels, office space, manufacturing facilities and amusement and recreation spaces.
The American Institute of Architects’ (AIA) semi-annual Consensus Construction Forecast, a survey of the nation’s leading construction forecasters, is projecting that spending will increase just more than eight percent in 2016, with next year’s projection being an additional 6.7 percent gain.
“While rising interest rates could pose a challenge to the U.S. economy, lower energy prices, improved employment figures and an enacted federal budget for 2016 are all factoring into a very favorable outlook for the construction industry,” AIA Chief Economist Kermit Baker said. “And after several years of challenging economic circumstances the institutional project sector is finally on very solid footing.”
Market Segment Consensus Growth Forecasts
Overall nonresidential building
Commercial / industrial
Amusement / recreation
Health care facilities
The AIA Consensus Construction Forecast Panel is conducted twice a year with the leading nonresidential construction forecasters in the United States, including, Dodge Data & Analytics, Wells Fargo Securities, IHS-Global Insight, Moody’s economy.com, CMD Group, 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 17 years.
Topics: Architectural Firms, Building Owners and Managers, Construction Firms, Data Centers - Mission Critical Information Centers, Educational Buildings, Educational Buildings - Colleges and Universities, Engineering Firms, Entertainment Buildings - Amusement Parks / Gaming & Casinos / Other, Great Commercial Buildings, Healthcare - Hospitals & Medical Facilities, Hospitality, Industrial and Manufacturing Buildings, Office Buildings, Religious Buildings, Retail, Sustainable Communities, Sustainable Trends and Statistics, Urban Planning and Design
Companies: The American Institute of Architects