by Shane Henson — November 8, 2013—Earlier this week, McGraw Hill Construction published its 2014 Dodge Construction Outlook, a mainstay in construction industry forecasting and business planning.
According to findings within the report, 2014 will be another year of measured expansion for the construction industry, with total U.S. construction starts for 2014 expected to rise 9% to $555.3 billion, higher than the 5% increase to $508 billion estimated for 2013.
The report also forecasts the following:
- Commercial building will increase 17%, a slightly faster pace than the 15% gain estimated for 2013. Both warehouses and hotels will continue to lead the way, while stores and office buildings pick up the pace. The positives for commercial building are improving market fundamentals and more bank lending for commercial development. Next year’s activity in dollar terms will still be 28% below the 2007 peak.
- Institutional building will edge up 2%, turning the corner after five years of decline. For the educational building category, colleges are revisiting capital expansion plans, and passage of recent construction bond measures in several states should help K—12 construction projects. Healthcare construction is expected to remain flat, given continued emphasis on cost containment.
- Public works construction will drop 5%, pulling back after a 3% gain in 2013 that was lifted by the start of several large highway and bridge projects. More focus on deficit reduction will limit federal support for environmental public works, although the improved fiscal position of state and local governments will help to cushion the extent of the public works decline.
