FMI forecasts construction put in place to increase 8% in 2014 and continue to grow over the next few years.
The Q1-2014 Construction Outlook from the construction-industry consultant and investment banker includes specific market predictions, including:
- Residential –Although the market is forecast to grow, the pace is slowing. Single-family construction should grow 18%. Multifamily construction will show a 27% increase in 2014; a drop from 2013's 44% increase.
- Commercial – Investors taking more risks are beginning to help lift commercial construction out of its slump. The industry is expected to grow another 7% in 2014 to $52.6 billion; the highest mark since 2008.
- Health Care – Construction will grow 2% in 2014, however a jump to 6% is predicted in 2015 as the outcomes on new health care regulations become clearer.
- Education – Improving state and local budgets will help move educational construction back into the growth mode. 2014 will see a 3% level of growth to $83 billion.
- Power – Growth to $91.2 billion is forecast for 2014 with a slow climb from 5% to 9% over the next four years. The cost of new nuclear power will continue to hinder growth until regulatory concerns are considered.
- Manufacturing – With signs of sustainable growth, predictions are for 5% in 2014 to $45.2 billion, and an upward swing with another 8% growth in 2015.
- Lodging –The industry forecasts 591 hotels opening in 2014 compared with the 500 in 2013. Growth at 13% is expected with this market reaching $16.1 billion.
- Transportation – 2014 will see a 7% improvement to $4.4 billion. With the president’s 2015 budget proposal of $73.61 billion for surface transportation spending, there is a bright future in the coming years in this industry.