RALEIGH,
N.C. (September 13, 2013)
– FMI (www.fminet.com), a leading provider of management consulting and
investment banking* to the engineering and construction industry, releases
today its Q3-2013 Construction Outlook. The markets continue to shift, reducing
annual Construction-Put-Place predictions to $909.6 billion, down nearly $4
billion from previous predictions. Early forecasts for 2014 show annual CPIP
continues moderate growth of 7%, rising to $977 billion.
Major
market predictions include:
• Residential Construction — FMI continues to forecast traction
in residential construction. However, the growth is expected to taper off to
12% in 2014. Total predicted residential forecast is $379.6 billion, compared
with the $338.2 billion for 2013.
• Commercial Construction — The current forecast calls for a 5%
increase in 2014. Although retail sales as of June 2013 were up 5.7% over the
previous year, new bricks and mortar retail space along with commercial other
construction growth will remain slow to recover.
• Healthcare —With business owners nervous about the
costs of the Affordable Healthcare Act, predictions are slightly unstable.
Although the healthcare construction forecast slipped 1% since last year, it is
still expected to grow 6% in 2014 to $44 billion.
• Educational — The increase in residential
construction and tax revenues will help bring this market back in many areas of
the country. Due to budget cuts for government spending at all levels, the
national market will rise only slightly in 2014 to 4% over 2013 levels.
• Manufacturing — The resurgence of the automotive
industry is a big boost to manufacturing as is the continuing explorations and
mining for shale oil and gas. However, manufacturing construction is expected
to drop 2% by year-end 2013 before returning to 4% growth in 2014.
• Highway and Street — Passage of MAP-21 calls for nearly
$38 billion for the fiscal year 2014 for the Federal-Aid Highway Program. This
is a major contributor to the CPIP predications of nearly $80 billion for 2014.
While
there is no singular reason for change in these markets, there are a few economic
concerns that touch all of them.
• Potential conflicts with Syria
• Downsizing of government and large
companies
• The implementation of Affordable
Healthcare Act
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schedule an interview with the author, please contact Sarah Avallone at
919.785.9221 or savallone@fminet.com.