Despite the dodgy recovery in the U.S. economy, the American Institute of Architects (AIA), Washington, D.C., believes the construction market is doing modestly better than initially expected and that construction professionals can expect solid growth for non-residential construction in 2013.
AIA said in a press release that a sharp spike in demand for industrial facilities so far this year, along with sustained demand for hotels and retail projects factors in what projects to be a 4.4% increase in spending this year for nonresidential construction projects — up from a projection of a 2.1% increase in the January Consensus Forecast. The AIA’s semi-annual Consensus Construction Forecast, a survey of the nation’s leading construction forecasters, including McGraw-Hill Construction, Reed Construction Data, IHS-Global Insight and Moody’s Economy.com and Wells Fargo, projects a 6.2% increase in spending in 2013. The AIA Consensus Construction Forecast offers some interesting insight into the differences in these construction forecasts and can be found at info.aia.org/aiarchitect/2012/charts/consensus-survey/july/july.html.
“With companies looking to bring back manufacturing jobs from overseas, there has been a sharp rise in demand for industrial facilities, which is leading to an upward revision in projections for future construction spending,” said AIA Chief Economist, Kermit Baker. “Continued budget shortfalls at the state and local level, along with a depressed municipal bond market are holding the institutional market back from seeing similar upticks in spending.”