Amerimix
BMJ Stone
Echelon Masonry
EZG Manufacturing
Federated Insurance
Fraco USA, Inc.
Hohmann and Barnard, Inc.
Hydro Mobile, Inc.
iQ Power Tools
Kennison Forest Products, Inc.
Mortar Net Solutions
Non-Stop Scaffolding
Pullman Ermator
SPEC MIX LLC
Stabila
Tradesmen's Software, Inc.
FMI construction put in place, estimated for the United States
FMI construction put in place, estimated for the United States
September 29, 2014 12:30 PM CDT

FMI issues 2014 Q3 Construction Outlook Report

Forecast calls for solid, slow growth

By

FMI, a leading provider of management consulting and investment banking to the engineering and construction industry, releases its Q3-2014 Construction Outlook. The forecast calls for solid, slow growth.

Contributing factors include relatively low energy prices, low inflation, unemployment holding around 6.2 percent and GDP slowly growing. Additionally, consumer confidence is rising steadily, building permits and housing starts bounced back in July, and banks are starting to lend again, that is, if the applicant has good credit and cash flow.

Therefore, sectors such as power, conservation and development, as well as transportation will continue to see growth ahead of GDP. However, water supply, sewage and waste disposal, and highway and street construction will be weaker as government spending is not expected to pick up significantly in the near term. Additional select market predictions include:

  • Residential – Multifamily construction is still expected to grow at a healthy pace of 13 percent in 2015 after reaching a near-record pace in 2014. The inventory for new homes increased to six months in July, showing some weakness in sales, but housing starts in July were 21.7 percent above July 2013 levels.

  • Office – Dropping unemployment rates and rising GDP have provided a lift in the office forecast now expected to reach 8 percent growth in 2014 and grow an additional 7 percent in 2015. Large metropolitan areas like New York City will benefit the most, as vacancy rates drop to 10.6 percent compared with national vacancy rates hovering around the 16 to 17 percent range.

  • Manufacturing – Improvements in manufacturing construction have been a surprise to many as the sector has been riding a roller coaster since the recession. After a flat 2013, the forecast calls for 2014 to end up 6 percent, growing an additional 8 percent in 2015.

  • Transportation – Transportation construction also continues at a solid pace with 7 percent growth in 2014.
To download a copy of the full report, click here.


About the Author

Sarah Avallone is a Marketing Associate at FMI. Contact Sarah at 919-785-9221 or savallone@fminet.com.

 

Related Articles

More Masonry Headlines

“I recommend that all mason contractors become a member of the MCAA.”

Bobby Gladu
Artisan Masonry, Inc.
MCAA member since 2017

Learn More