This is always an interesting time of year. Most everyone gets a chance to slow down just a bit at work and burn up those remaining vacation days they never found time to use earlier in the year. It’s also a good time to reflect on how the year played out for your business, begin to look ahead, and wonder what the New Year will bring.
It should come as no surprise to any of you that the design and construction market has been strong for many years now. Climbing out of the depths of the Great Recession hasn’t been easy, but year after year the market continues to improve and grow stronger. But, as we all know, construction is a cyclical industry. What rises up must eventually fall back down. This historical trend continues to hang over us like a dark cloud — especially over the last two years. But despite our concerns, the overall market continued to gain strength this year and avoid a downturn.
This year proved to be another solid year for the construction industry. Despite a recent slight downturn on the multi-family residential front, growth in the single-family market and residential improvements category powered overall growth in the residential sector in 2017. In the nonresidential sector, construction put in place figures were strong in the office, commercial, lodging and amusement/recreation categories. Construction starts continued to grow stronger in the institutional and manufacturing buildings categories as well. So what’s in store for us in 2018 and beyond? It looks as if we’re in for more of the same.
• FMI is forecasting a 7% increase in residential and 5% increase in nonresidential buildings construction put in place figures next year. The single-family (+7%), office (+9%), and commercial (+7%) sectors are on tap for the biggest gains.
• Dodge Data & Analytics expects total construction starts to rise by 3%. Growth is projected in the single-family (+9%), commercial buildings (+2%), institutional buildings (+3%), and public works (+3%) categories.
• The chief economist for the Associated Builders and Contractors predicts stability for the construction industry’s economy and expanding nonresidential construction spending in 2018.
These are just a few of the data points that make up the overall forecast for U.S. construction activity next year. For an in-depth analysis and review of the 2018 construction climate, read this month’s cover story, “Climbing to the Peak,” written by Freelance Writer Amy Fischbach. I’m pretty confident it will provide you with a little peace and joy this holiday season. Happy New Year!
