Construction activities are expected to pick up for the remainder of the year, bringing the forecast for growth upward to 6% for 2015, from the previous forecast of 5% in Q2, according to the Q3 FMI Construction Outlook.
The Q3 FMI Construction Outlook forecasts growth for 17 sectors, across residential, non-residential and non-building groups. Manufacturing continues to be the fastest-growing construction sector this year at 18%.
Other strong markets forecasted double-digit growth include:
- Amusement and recreation
Construction growth is not only predicted to rise this year, but is also expected to climb to 7%, reaching $1.09 billion in 2016, the highest total since 2008, unadjusted for inflation. However, as construction gets busier, productivity improvement becomes more of a challenge.
“Improvements in productivity will be critical for achieving growth and sustaining margins in the years ahead,” said Chris Daum, President and Senior Managing Director of FMI Capital Advisors, Inc. “We expect to see the use of new technologies and services expand, especially in highly competitive markets or where it has been difficult to find skilled workers.”
With an expected 8% drop this year, power construction is one sector that has cooled down in 2015. The power industry is in flux due to changing fuel supplies as well as variable rates of growth in alternative energy sources such as solar and wind.