FMI releases construction outlook report

by Shane Henson — July 23, 2012—Despite the still jet-lagged economy, which has impacted the construction industry, FMI, a provider of management consulting and investment banking to the engineering and construction industry across the United States, forecasts a 3% growth for construction put in place (CPIP) by the end of 2012 and another 7% in 2013 for a total of $882.4 billion. This is $92.6 billion more than the lows of 2011, the firm notes.

These and other forecasts are offered in FMI’s second quarter 2012 Construction Outlook Report.

In nonresidential construction, FMI says the forecast is mixed, with healthcare and manufacturing showing the most positive signs of growth. Projections include:

  • Office construction should be 4% by the end of 2012 and improve to around 6% for 2013 through 2014.
  • Commercial construction is beginning to grow again. FMI expects 5% growth in CPIP this year, followed by 8% growth in 2013 to around $49 billion.
  • Healthcare construction is expected to only rise 3% in 2012. But that will strengthen to double digits by 2015, achieving record highs around $52.6 billion.
  • Education construction will have only a 1% increase in CPIP in 2012 and a slight rise of 2% in 2013.
  • Religious construction will be flat in 2012, with some revival in 2013 to 6% growth at $4.3 billion.
  • Public safety construction will be flat in 2012, but will grow 6% in 2013 to $4.3 billion.
  • Amusement and recreation construction will climb 8% to $17.4 billion in 2013.
  • Transportation construction will grow 3% in 2012 and to 5% through 2015.
  • Communications construction will experience steady growth of 4% to 6% through 2015 with 2012, ending up around $18.5 billion.
  • Manufacturing construction is expected to rise 3% in 2012 and show steady increases to 2015.
  • Power-related construction is forecasted to have a 10% rise for 2012 and another 10% in 2013 to $108 billion.