AIA expects slight increase in nonresidential construction spending in 2012; 'substantial growth' in 2013
Despite the lingering effects of an over-built housing market, the continued difficulty obtaining financing for real estate projects, budget shortfalls at state and municipal governments, and the anxiety surrounding the prolonged European debt crisis, there are signs that the U.S. design and construction industry will be improving, economists at the American Institute of Architects say.
According to the AIA semi-annual Consensus Construction Forecast, pent-up demand for commercial and retail projects will result in a 2.1percent rise in spending in 2012 for nonresidential construction projects and a 6.4 percent increase in spending in 2013.
“Spending on hotels, industrial plants and commercial properties are going to set the pace for the construction industry over the next two years,” said AIA Chief Economist Kermit Baker, in a Jan. 25 release. “The institutional market won’t experience the same growth, but healthcare facilities and places of worship are poised for a positive economic outlook in that sector.”