AIA Consensus Construction Forecast Projects Increase in Construction Spending in 2015

The American Institute of Architects (AIA) semi-annual Consensus Construction Forecast, a survey of the nations leading construction forecasters, is projecting that spending will see a 7.7% increase in 2015, with projections for 2016 nudging up to 8.2%.

Though weather-related delays impacted the nonresidential building market during early 2014, conditions improved dramatically and the year ended with greater than anticipated spending levels.The projected increases for 2015 are led by the demand for hotels, office buildings, and institutional projects.

This is the first time since the Great Recession that every major building category is projected to see increases in spending, said AIA Chief Economist, Kermit Baker, PhD, Hon. AIA. But by far, the most significant driver that will fuel greater expansion in the marketplace is the revival in the institutional sector, especially with growing demand for new healthcare and education facilities, which alone traditionally account for a third of spending on new building construction."

Baker continued, The overall construction industry appears to be on very solid ground for the next two years. That said, uncertainties in international economies, potential labor shortages, lower energy costs, rising interest rates and construction costs all are factors that we will be watching closely to see how they may adversely impact the marketplace.

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AIA Consensus Construction Forecast Projects Increase in Construction Spending in 2015