Management consulting and investment banking firm FMI predicts that construction-put-in-place (CPIP) at the end of 2012 will be $826 - $884 billion. FMI researchers also predict CPIP growth rates to be slightly ahead of GDP in 2013 and 2014. This would place the CPIP at more than $1 trillion by the end of 2014, nearly 6 percent of GDP.
The predictions are including in the new report “U.S. Markets Construction Overview” published annually by FMI. Other predictions include:
- Power CPIP will cross the $100 billion mark in 2013.
- Residential CPIP will be back to double-digit growth in 2013.
- Transportation and healthcare CPIP will reach record levels by 2013.
- Education CPIP will continue to rise achieving 2008 numbers by 2016.
However, in 2013 commercial buildings, offices, manufacturing facilities, communications systems and lodging CPIP are expected to continue to underperform at an average of 60 percent of 2008 levels, off by more than $115 billion. By 2016 these sectors are predicted to only reach 70 percent of 2008 CPIP.
In addition, excitement over the double-digit growth in residential construction is also balanced with the disappointment that by 2016 residential CPIP will still only be at 65 percent ($200 billion behind) the record high in 2006.
This year, the overview includes a synopsis of the key trends and discussions of important issues facing nine of the non-residential construction sectors. Highlights include:
- The uncertainty stemming from the two diverse approaches to economic recovery presented by the U.S. presidential candidates.
- How information technology is driving innovation in the energy services market.
- The challenge of recruiting, managing and retaining talent.
- Concerns over succession planning as industry leaders look toward retirement.
- The increasingly vital role of modularization and prefabrication.
To purchase a copy of the report, visit www.fminet.com/resources.