However, in the face of a supportive economy, construction spending on nonresidential buildings disappointed last year.
<img src="https://archinect.imgix.net/uploads/3k/3k0u6ozy6u1xuunj.gif" border="0" /><em>Construction spending for nonresidential buildings is projected to increase 4 percent this year and continue at that pace of growth through 2019. While the commercial construction sectors will generate much of the expected gains this year, by 2019 the industrial and institutional sectors will dominate the projected construction growth. [...]
The American Institute of Architects has published its latest Consensus Construction Forecast, and it's looking quite rosy. Despite labor shortages and rising material costs that continue to have an impact on the construction industry, the report — supported by the last few editions of the Institute's monthly Architecture Billings Index — projects a 4% increase for nonresidential buildings this year and a continuation of this pace through 2019. Analyzing this economic optimism, the AIA points out five key factors:
- Rebuilding and repairs natural disasters
- Tax reform implications for construction
- Possibility of an infrastructure package
- Strong consumer and business confidence levels
- Leading economic indicators for the construction sector
Can these positive projections be felt in your firm or region as well? Let us know in the comment section below.