2015 construction outlook looks good — sort of
Top economists predict spotty market ahead.
The economy has been slowing down, and isn’t growing as quickly as expected, said Alex Carrick, chief economist at CMD, formerly Reed Construction Data, during Thursday’s construction outlook webinar hosted by CMD. That statement was underscored when the stock market closed down, cutting the year’s gains to a measly 0.10%.
And the wobbly economy was a concern to the other top economists in the industry, Ken Simonson of the Associated General Contractors of America and Kermit Baker of the American Institute of Architects.
The construction-building picture now, going forward
Total nonresidential construction last year was more than $606 billion, up 7.1% from a year earlier, according to the Census Bureau. Leading the charge were lodging, office, and manufacturing construction projects. Total residential construction last year was $354 billion, up about 3.5% from a year earlier, led in large part by growth in multifamily construction.
And this year is off to a reasonable start as well, the economists report, citing continuing strength in multifamily housing starts, as well as power and manufacturing projects. Lodging, too, has been a strength, but Baker sees this as late in the cycle, saying most of the “growth is behind us.”
However, all three see construction growth as “spotty” and “uneven,” and note there are challenges, including fewer civil engineering projects in the pipeline, uncertainty over MAP-21 funding, and the worker shortage, among others.
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Source: smartblogs.com/Jennifer Hicks
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