Despite labor shortages and rising material costs that continue to impact the construction sector, U.S. construction spending for nonresidential buildings is projected to increase 4% this year and continue at that pace of growth through 2019, according to the American Institute of Architects semi-annual Consensus Construction Forecast.
“This year, the strongest growth is expected to come from the commercial sectors, with spending on office, retail and other commercial, and lodging facilities all expected to see gains in excess of 4%,” says AIA Chief Economist, Kermit Baker, PhD, Hon. AIA.
The consensus construction forecast further indicates the commercial construction sectors will generate much of the expected gains this year, and by 2019 the industrial and institutional sectors will dominate the projected construction growth, reports the AIA.
“Rebuilding after the record-breaking losses from natural disasters last year, the recently enacted tax reform bill, and the prospects of an infrastructure package are expected to provide opportunities for even more robust levels of activity within the industry,’ Baker says. “The Architecture Billings Index (ABI) and other major leading indicators for the industry also point to an upturn in construction activity over the coming year.”
The AIA Consensus Construction Forecast Panel is conducted twice a year with the leading nonresidential construction forecasters in the United States. Its purpose is to project business conditions in the construction industry over the coming 12 to 18 months. For a more detailed forecast report, go here.