The forecast predicts 2013 to end with 7% growth for the construction industry as a whole.
FMI has released its Q4-2013 Construction Outlook. The forecast predicts 2013 to end with 7% growth for the construction industry as a whole. Final statistics for construction-put-in-place will be available April 2014.
Select market predictions include:
- Residential – Forecasts show residential construction ending 2013 with 18% growth. Multifamily construction has been particularly strong in the past two years with growth of 48% in 2012 and 38% in 2013. With rents still high and household formations low, multifamily construction is expected to continue growing.
- Power – After a booming return in 2012, power construction slowed to just 2% growth in 2013. However, the industry is expected to grow an additional 5% in 2014 to reach $101.4 billion.
- Manufacturing – Growth in manufacturing construction will end around 4% for 2013. This upward trend will continue, reaching 6% or more starting in 2015.
- Lodging – After several years of sharp decline during the recession, lodging construction continues its solid comeback in 2013, growing 18%. This sector is expected to grow another 10% in 2014. Improvement of existing properties will continue to be a focus for the industry.
- Amusement and Recreation – The recent announcement of a $672 million stadium for the Atlanta Braves gives amusement and recreation construction a 2014 boost. Construction put in place for 2014 should reach $15.7 billion, with additional growth through 2017.
- Transportation – Completed construction of transportation projects in 2013 is expected to end 12% above 2012 levels, with additional growth of 6% in 2014. The airline industry is expected to play a role in this growth. Airlines are now ordering a record number of new planes to prepare for growth over the next decade.