The forecast for total construction-put-in-place for 2013 continues to show an increase of 8% over 2012 levels. The $918,897 million estimate is a solid improvement.
Photo credit: FMI Corp.
FMI forecast 2013 construction put in place to increase 8 percent over 2012 levels.
The management consultant to the construction industry's Q1 2013 Construction Outlook estimates solid market improvement despite shifting strength in individual construction sectors, with total construction put in place expected to reach $919 billion. But FMI does not expect a return to above-trillion-dollar markets until 2015.
The star of the show is residential buildings with a 23 percent rise in single-family buildings. While much of business sector is still in wait-and-see mode, some industries are breaking the mold and planning for growth. Commercial, lodging and office construction are starting to pick up.
The rich shale regions of the country are seeing a lot of construction activity. With oil and gas exploration booming, these regions are in need of housing, as well as the construction of roads, rail and pipelines to move the product from the fields to refining and distribution sites.
In addition, the potential for greater energy independence and lower energy prices is helping to make the U.S. more competitive in the global market and enticing more manufacturing to relocate in the U.S.
Single-family housing put in place grew 19 percent in 2012, and FMI expects another 23 percent growth to reach $161 billion by the end of 2013. Multifamily construction improved a whopping 47 percent in 2012, with FMI looking for another 31 percent in 2013
Nonresidential construction trends and forecasts by sector
- Lodging — After three years of steep declines, the market for lodging construction came back a strong 25 percent in 2012 and FMI expects another 10 percent growth in construction put in place for 2013.
- Office — Office construction is finally showing a solid but slow turnaround with 5 percent growth in 2012 and another 5 percent increase expected in 2013.
- Commercial — Commercial construction is the third largest nonresidential construction market behind education construction and manufacturing construction. That is why it is good to see that it continues into its third year of good growth, moving up 8 percent in 2012 and looking for another 7 percent to reach $50.3 billion in 2013.
- Health care — Health care construction was moderate in 2012, growing only 3 percent, but FMI expects it to pick up in 2013 to 8 percent to $44.2 billion construction put in place for the year.
- Manufacturing — Manufacturing construction increased 17 percent in 2012. It will continue with another 6 percent increase for 2013 through 2014.
- Power-related — Construction for the power market grew 9 percent in 2012 and will continue to grow between 8 and 9 percent through 2017.