Wells Fargo Predicts Modest Industry Growth for 2014

Q4 Construction Quarterly report recaps a solid year in construction and predicts more gradual improvement in 2014.

The Q4 2013 edition of the Wells Fargo Construction Quarterly Report summarizes that compared 2012, the construction industry has improved — although somewhat unevenly. Residential building continues to lead the way with strong year-over-year growth. Private non-residential construction continues to grow modestly and in 2013, compensated for flat public construction growth.

"As we close out 2013 and take inventory of the construction industry for the year ahead, I decided to look back at the four key takeaways from our 2013 Construction Industry Forecast published in February to see how they played out during the year," says national sales manager John Crum in the report's introduction. "Here is what we said construction industry executives could look forward to at the beginning of the year:

  1. Our bellwether indicator — the Optimism Quotient (OQ) — was a very positive 106, indicating optimism about improved non-residential construction activity in 2013 compared to 2012.
  2. Construction equipment distributors were confident that the rental trend and the need for rental fleets would continue to grow.
  3. Executives expected residential construction activity would lead the way for the industry.
  4. Contractors said they intended to buy new and used equipment during 2013, but at a slightly lower rate than in 2012."

Highlights of the report include snap shots of residential and commercial construction activity and construction equipment procurement and rental trends. 

Click here to download a free copy of the report.