Despite the lingering effects of an over-built housing market, the continued difficulty to obtain financing for real estate projects, budget shortfalls at state and municipal governments and the anxiety surrounding the prolonged European debt crisis, there are signs that the U.S. design and construction industry will be improving.
The optimism this time comes from the American Institute of Architects, which compiles a Consensus Construction Forecast. The AISA forecasting panel had been expecting a better 2012 – 6 percent more non-residential building – until 2011 got stuck in the economic mud in the second half.
The forecast for 2012 now stands at 2.1%, but the group is looking for 6.4% in 2013.
Some details from the AIA forecast:
- Between November 2010 and November 2011, spending on nonresidential construction projects (buildings as well as public works projects) declined by almost 3%.
- Private projects saw modest gains, but public-project spending fell almost 7%.
- Retail and other commercial facilities were up almost 7%.
- Private educational facilities rose 1%.
- Public healthcare facilities were up nearly 12%.
- Holtels were down 26%.
- Religious facilities were down 20%.
- Public safety sank by 12%.