American Institute of Architects (AIA) Releases Semi-Annual Consensus Construction Forecast

Jan. 30, 2012
Despite the lingering effects of an over-built housing market, the continued difficulty to obtain 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, according to the American Institute of Architects' (AIA) semi-annual Consensus Construction Forecast, a survey of the nation’s leading construction forecasters

Despite the lingering effects of an over-built housing market, the continued difficulty to obtain 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, according to the American Institute of Architects' (AIA) semi-annual Consensus Construction Forecast, a survey of the nation’s leading construction forecasters. Corporate profits have returned to pre-recession levels and businesses have subsequently been increasing their capital spending, borrowing costs are at record low levels and pent up demand for commercial and retail projects factors into what projects to be a 2.1% rise in spending this year for nonresidential construction projects. The forecast also projects a 6.4% increase of 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, Ph.D., Hon. AIA. "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."

Remarking on what could derail a positive turnaround, Baker added, "We are concerned that the unusually high energy costs, given the overall weakness in the economy, might trigger a jolt in inflation and hamstring economic recovery. The housing market also needs prices to stabilize and to resolve the high number of delinquencies and foreclosures before it can fully recover."

Voice your opinion!

To join the conversation, and become an exclusive member of EC&M, create an account today!

Sponsored Recommendations

Electrical Conduit Comparison Chart

CHAMPION FIBERGLASS electrical conduit is a lightweight, durable option that provides lasting savings when compared to other materials. Compare electrical conduit types including...

Fiberglass Electrical Conduit Chemical Resistance Chart

This information is provided solely as a guide since it is impossible to anticipate all individual site conditions. For specific applications which are not covered in this guide...

Considerations for Direct Burial Conduit

Installation type plays a key role in the type of conduit selected for electrical systems in industrial construction projects. Above ground, below ground, direct buried, encased...

How to Calculate Labor Costs

Most important to accurately estimating labor costs is knowing the approximate hours required for project completion. Learn how to calculate electrical labor cost.