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Recovery for Construction Industry Projected to Result in Solid Increases in Spending Levels in 2015

Wednesday, January 28, 2015  
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      Institutional project sector seen as key to market resurgence

      Contact: Scott Frank
      202-626-7467
      sfrank@aia.org

      http://twitter.com/AIA_Media

      For immediate release:
      Washington, D.C. – January 28, 2015 – 
      The nonresidential building market was hamstrung by weather-related delays during the first part of the 2014, but conditions improved dramatically throughout the rest of the year to finish with greater than anticipated spending levels. The commercial construction sector is now looking at double-digit increases in 2015, led by vigorous levels of demand for hotels and office buildings. 

      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 see a 7.7% increase in 2015, with next year’s projection nudging up to 8.2%.

      VIDEO: Q1 2015 Economic Forecast

      “This is the first time since the Great Recession that every major building category is projected to see increases in spending,” said AIA Chief Economist, Kermit Baker, PhD, Hon. AIA. “But by far, the most significant driver that will fuel greater expansion in the marketplace is the revival in the institutional sector, especially with growing demand for new healthcare and education facilities, which alone traditionally account for a third of spending on new building construction.”

    Market Segment Consensus Growth Forecasts    

    2015       

    2016

    Overall nonresidential building

    7.7%

    8.2%

    Commercial / industrial

    11.8%

    10.4%

    Hotels

    15.3%

    10.4%

    Office buildings

    12.9%

    11.5%

    Industrial facilities

    10.5%

    10.1%

    Retail

    10.1%

    9.0%

    Institutional

    5.0%

    5.4%

    Amusement / recreation

    9.1%

    5.3%

    Education

    4.7%

    5.2%

    Healthcare facilities

    4.7%

    6.2%

    Public safety

    1.7%

    3.6%

    Religious

    1.2%

    3.6%

      Baker continued, “The overall construction industry appears to be on very solid ground for the next two years. That said, uncertainties in international economies, potential labor shortages, lower energy costs, rising interest rates and construction costs all are factors that we will be watching closely to see how they may adversely impact the marketplace.”

      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 16 years.

      About The American Institute of Architects
      Founded in 1857, 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 wellbeing. 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.


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