{"id":6939,"date":"2012-09-01T00:00:00","date_gmt":"2012-09-01T00:00:00","guid":{"rendered":"https:\/\/insulation.org\/io\/articles\/2012-construction-outlook\/"},"modified":"2017-06-09T20:25:11","modified_gmt":"2017-06-09T20:25:11","slug":"2012-construction-outlook","status":"publish","type":"articles","link":"https:\/\/insulation.org\/io\/articles\/2012-construction-outlook\/","title":{"rendered":"2012 Construction Outlook"},"content":{"rendered":"

FMI,
\na large provider of management consulting and investment banking to the
\nengineering and construction industry, recently released the
\nsecond quarter 2012 Construction Outlook<\/i> Report. Here are excerpts of
\nthe report’s findings on the construction industry.<\/span><\/p>\n

There are some brighter spots in construction, and, overall,
\nwe expect there will be 5% more construction put in place [CPIP] than in 2011,
\nor around $826 billion. Yes, that is only around the levels reached in
\n2000-2001, but CPIP will again be more than a trillion dollars by 2014?.<\/span><\/p>\n

We are slowly seeing signs of improvement in some
\nfundamentals with housing and even manufacturing scratching out a comeback.
\nPower construction is also a very active area and not just in shale gas
\nproduction. Gasoline prices are down for the moment, helping businesses and
\nconsumers alike… Natural gas production presents both good news and some
\nchallenges as more production helps keep the cost to the consumer down.
\nHowever, if the price continues to decline, natural gas use will affect the
\ngrowth of alternative fuels and slow down new natural gas mining projects.<\/span><\/p>\n

Construction Forecast <\/span><\/b><\/p>\n

If 2012 does turn out to
\nbe the turning point for construction, it will be a long, slow turn. That may
\nprove to be a safer road to recovery than a sharp V or U curve. At this point,
\nwe expect CPIP to grow 5% (to $826 billion) and as high as 7% in 2013 (to
\n$882.4 billion).That improving growth rate includes a solid recovery in
\nhousing, especially multi-family units, and strong growth in power
\nconstruction. Other areas, like commercial construction, will awaken from a
\nlong slumber to resume slower than traditional growth rates but somewhat ahead
\nof national GDP growth. This is more reflective of population demographics than
\na rapid recovery. <\/span><\/p>\n

Office Construction<\/span><\/b><\/p>\n

After falling for three
\nyears, growth in office construction should be 4% by the end of 2012 and
\nimprove to around 6% for 2013 through 2014. Still, these levels, at around
\n$35.7 billion to $40.1 billion in 2014, are just returning to levels last seen
\nin the late ?90s. Reflective of the general insecurity in the economy and new
\nhiring, the national outlook for office construction is continued slow growth. <\/span><\/p>\n

Trends<\/span><\/p>\n