The forecast continues to show optimistic growth.
FMI has released its Q1-2014 Construction Outlook. The forecast continues to show optimistic growth. As a whole, construction-put-in-place is anticipated to grow 8% in 2014, with continued growth over the next few years.
Select market predictions include:
- Residential –Although the market is forecasted to grow, the pace is slowing. Forecasts show an 18% growth in single-family construction. However, multifamily construction will show a 27% increase in 2014, a drop from the 44% increase in 2013.
- Commercial – Investors are beginning to help lift commercial construction out of a slump by taking more risks. The industry is expected to grow another 7% in 2014 to $52.6 billion – the highest mark since 2008.
- Health Care – Construction will grow 2% in 2014, however a jump to 6% is predicted in 2015 as the outcomes on new health care regulations become clearer.
- Educational – Improving state and local budgets will help move educational construction back into the growth mode. 2014 will see a 3% level of growth to $83 billion.
- Power – Growth to $91.2 billion is forecast for 2014 with a slow climb from 5% to 9% over the next four years. The cost of new nuclear power will continue to hinder growth until regulatory concerns are considered.
- Manufacturing – With signs of sustainable growth, predictions are for 5% in 2014 to $45.2 billion, and an upward swing with another 8 percent growth in 2015.
- Lodging –The industry forecasts 591 hotels opening in 2014 compared with the 500 in 2013. Growth at 13% is expected with this market reaching $16.1 billion.
- Transportation – 2014 will see a 7% improvement to $4.4 billion. With the president’s 2015 budget proposal of $73.61 billion for surface transportation spending, there is a bright future in the coming years in this industry.