FMI Sees Growth In Construction Market
According to analysts at FMI, growth within the construction industry is now expected to reach 6 percent for 2015 and 7 percent for 2016, with the total value to reach $1.09 trillion.
This is the highest total since 2008, unadjusted for inflation. Growth in construction for end users in manufacturing has led the way in 2015 and should come in at 18 percent growth for 2015. Analysts have found that this pace within the sector is unlikely to continue, as they predict only 5 percent to 7 percent for 2016 through 2019. Manufacturing and industrial construction requires a long planning cycle in most cases; it also is a market that reflects global competition as countries strive to keep their workers employed and boost exports. Lower energy prices are, overall, beneficial to this sector, with the exception being mining and oil and gas construction, which has slowed since energy prices started dropping last year. Lower energy prices, along with a trained and available workforce and improved modes of transportation, also attract manufacturing. The completion of infrastructure work that will enhance access to and from the Panama Canal will mean a boost for manufacturing in Gulf Coast states.
FMI also found that other strong markets for 2015 include lodging, office, and amusement and recreation, all experiencing double-digit growth. Multifamily construction has cooled to 11 percent for 2015 with single-family at 9 percent in 2015 and 10 percent in 2016. In the non-building sectors, power construction continues to weaken, with an expected 8 percent drop for 2015.
FMI is a leading provider of management consulting, investment banking and personal development services to the engineering and construction industries.