AIA predicts healthy growth for retail construction this year and next. The American Institute of Architects’ semi-annual Consensus Construction Forecast is projecting growth in overall nonresidential building spending of almost 6%, just below the pace of growth for 2016. For retail in particular, the organization forecasts 6.8% growth this year, followed by 5.3% growth in 2018.
Retail construction is projected to grow 6.8% in 2017 and 5.3% in 2018, according to AIA.
With construction spending continuing on an upward trajectory, 2016 can be considered a successful year for the nonresidential building sector, AIA notes. The commercial construction sectors – retail, office, and hotel – will continue to lead the building recovery, while industrial construction is projected to see almost no increase this year. For 2018, the institutional construction sectors will generate much of the growth, particularly the large education structures market.
“Though most conditions look favorable, virtually every segment of the design and construction market is reporting that recruiting and retaining qualified staff is a growing issue,” said AIA Chief Economist Kermit Baker, PhD, Hon. AIA. “Many workers left the industry during the downturn, and others left the workforce entirely, and rebuilding a competent and productive workforce is a challenge, particularly when the national unemployment rate is below 5%.”
The AIA Consensus Construction Forecast Panel is conducted twice a year with leading nonresidential construction forecasters in the United States including Dodge Data & Analytics, Wells Fargo Securities, IHS-Global Insight, Moody’s economy.com, CMD Group, Associated Builders & Contractors, and FMI.