Nonresidential construction market predicts healthy growth
These estimates were made in spite of poor weather conditions that have decreased design and construction activity within 2015’s first quarter. Despite these factors, the construction market has shown positive performance.
The strongest activity has been among commercial property construction, particularly hotels and offices. Manufacturing construction spending has been especially high, which was caused by the rise in natural gas and domestic oil production.
The semi-annual Consensus Construction Forecast, which is conducted by the American Institute of Architects, uses a survey from the top construction forecasters in the U.S. to predict that construction market spending will rise by nine percent for 2015. They estimate that 2016 will increase by 8.2 percent. This survey is completed twice each year.
“Buoyed mostly by the red-hot commercial sector, spending on nonresidential buildings should be close to $360 billion this year, approaching $390 billion in 2016,” AIA Chief Economist Dr. Kermit Baker said. “But the demographic factors that are also fueling heavy demand for healthcare and education facilities are going to lead to a more balanced construction market in the foreseeable future.”