A multitude of factors are preventing a recovery for the beleaguered design and construction industry. Lenders that have been extremely reticent to finance construction projects, budget shortfalls at all levels of government, the ripple effect of overbuilding, a depressed housing market and rising costs of key construction commodities are all contributing to what projects to be a decline of 5.6 percent in spending this year for nonresidential construction projects.
The American Institute of Architects a survey of the nation’s leading construction forecasters, also projects a 6.4% increase of spending in 2012.
Market Segment Consensus Growth Forecasts 2011 2012
Overall nonresidential -5.6% 6.4%
Commercial / industrial -6.5% 11.8%
Hotels – 17.9% 18.0%
Industrial – 15.8 8.4%
Office buildings -6.1% 9.8%
Retail -3.1% 11.8%
Institutional – 3.4% 4.4%
Religious -10% 6.3%
Education -5.2% 2.6%
Public safety -2.5% 0.9%
Amusement / recreation -0.3% 5.9%
Healthcare facilities 1.8% 7.1%
