FMI's Construction Outlook
Learn more about the trends and forecast for the following commercial construction markets inside FMI's recently released First Quarter 2016 Construction Outlook report.
- Health Care
- Public Safety
- Amusement & Recreation
Construction had a busy year in 2015, adding 11% growth to reach nearly $1.1 trillion in construction put in place. In current dollars, that is the highest total since 2008 and the highest growth rate since 2005. Signs that the rate of growth for the industry is slowing have caused us to forecast a slower 6% rate of growth to reach $1.6 trillion in 2016. In nonresidential construction, highway and street construction will be the volume leader, in part thanks to a new highway bill and the fact that this is always a top sector. After a breakout year of 31% growth for lodging construction in 2015, adding another 15% in 2016 will assure that lodging retains its place as the fastest-growing sector at this time. Showing signs of a robust economy for jobs, wage increases and more disposable income, growth for communication construction (11%), office construction (9%) and amusement and recreation (9%) will lead the way for nonresidential building construction. After a solid rebound since 2011, commercial construction has slowed to around 7% growth. This is largely due to more use of online commerce and slow growth in wages, thus not as much discretionary spending. Due to states’ and communities’ reluctance to add debt, education construction has been slow to improve since the recession, but most states’ revenues are improving, and the pressure will be ramped up to build or renovate schools. Read Full Report