Jan. 31, 2018
The construction sector has been suffering from labor shortages and growing costs for materials. But those headwinds won’t be sufficient to hamper the 4% rise in construction spending this year and next predicted by the American Institute of Architects (AIA) in its semi-annual Consensus Construction Forecast.
“Rebuilding after the record-breaking losses from natural disasters last year, the recently enacted tax reform bill, and the prospects of an infrastructure package are expected to provide opportunities for even more robust levels of activity within the industry,” said AIA Chief Economist, Kermit Baker, Ph.D. “The Architecture Billings Index (ABI) and other major leading indicators for the industry also point to an upturn in construction activity over the coming year.”
The office space, commercial/industrial and retail sectors in particular are anticipated to see significant gains in 2018, while institutional facilities should see lesser gains. Next year, AIA anticipates the largest gains in construction spending will be in industrial, education and health care facilities.
– Nicholas Stern, managing editor