According to FMI, a consulting firm specializing in the construction industry, total construction put in place for 2015 is predicted to grow 8 percent. This supports earlier FMI predictions that CPIP will top $1 trillion in 2015, something the market has not seen since 2008. This indicates that the economy is on track for a resilient recovery.
“The FMI report is consistent with the increased level of activity we have been experiencing,” said Brian Gallagher, Marketing Director for O’Neal, Inc., an integrated design and construction firm. “Private sector activity, particularly capital investments in manufacturing, process chemical and other industrial sectors is ahead of last year.”
Geographically, larger cities are experiencing strong construction growth due in part to increases in rents and declining inventory for housing and office space. The sectors expected to experience the highest growth rate are:
•Lodging construction – 16 percent CPIP growth
•Commercial construction – 15 CPIP growth
•Manufacturing construction – 11 CPIP growth
•Office construction – 11 CPIP growth
•Residential construction – 9 percent CPIP growth
“The current growth cycle appears to be broad-based and sustainable.” Randy Giggard, managing director of research services for FMI. “Most of the new construction activity is in the private sector. Projects dependent on government spending, especially those involving infrastructure, continue to be at the mercy of politics.”
To obtain a copy of the report, please visit FMI.
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