FMI Corporation, a provider of consulting and investment banking services to the built environment, recently released the 2024 North American Engineering and Construction Overview: Second Quarter. The report provides a comprehensive forecast for a broad range of construction and engineering segments in the U.S. and Canada for 2024.
While engineering and construction spending is expected to end 2024 up 5%, not all sectors will be the same. Those in the multifamily and commercial sectors face a tougher outlook, while manufacturing, lodging, and highway and street look poised for double-digit growth. Key takeaways include:
- Continued strong investment growth across manufacturing, lodging, public safety, highway and street, transportation, and sewage and waste disposal. Each of these segments are forecast to end the year with growth of 10% or higher over 2023 levels.
- Many segments are expected to end 2023 with growth rates between 5% and 10%. These segments include health care, education, religion, amusement and recreation, communication, power, water supply, and conservation and development.
- Single-family residential, the largest segment in the industry, is expected to stabilize from the large 14% drop in 2023 and see more investment in 2025. Conversely, multifamily residential investment is expected to recede somewhat over the next several years.
