Narrow by location

FMI’s Construction Outlook

Economic

FMI’s forecast, the FMI Construction Outlook, predicts an increase of 4% for total construction put in place for 2017 and an increase of 5% in 2018.

The primary growth segments in 2018 are expected to include residential, commercial, lodging, office and manufacturing—all with forecast growth of 5% or more. Most other segments are likely to grow roughly with the rate of inflation and may therefore be considered stable. Sewage and waste and water supply are the only segments expected to decline in 2018.

Forecasts for key sectors include:

  • Lodging — Up 5% for 2017, lodging construction is coming off several years of strong double-digit, year-over-year growth since 2012. Supply is outpacing demand, causing increasing vacancy rates.
  • Office — Up 9% for 2017 to $73.4 billion. Still seeing positive growth, but moderating after double- digit gains during the past three years. Slowdown in high-tech development of office space is the primary drawback on forecast growth.
  • Commercial — Up 10% for 2017. Several traditional brick-and-mortar retailers closing stores in large numbers. Continued rise in e-commerce as a percent of retail sales driving demand for warehouse and distribution center construction.

Unintended Tax Reform Consequences: Impact to GAAP Financial Statements

from Carr, Riggs & Ingram The GOP Tax Reform was signed into law on December 22, 2017. Many... »

Highly Anticipated Report on Bid Protests is Finally Here!

By Aron C. Beezley, Bradley RAND Corporation recently issued its much-anticipated report on the prevalence and impact of... »

U.S. Added 148,000 Jobs in December, in Lagging Finish to Year of Strong Growth

By Danielle Paquette The economy added 148,000 jobs in December after a year of steady hiring, the government reported... »

Nonresidential Construction Spending Ticks Higher in November, Down Year-Over-Year, ABC Says

Nonresidential construction spending expanded 0.6 percent in November, totaling $719.2 billion on a seasonally adjusted basis, according to... »

LEAVE YOUR COMMENT

Your email address will not be published. Required fields are marked *