2016 FORECASTS ARE UP—MULTIPLE SURVEYS INDICATE CONTINUED POSITIVE TRENDS
Multiple forecasting sources are all pointing to continued confidence and positive growth in construction for 2016.
- Revenue within the industry should be on the uptick, based on respondents’ expectations for contract volume. As an industry, 53.7 percent expect volume to increase and 11.4 expect it to decrease, resulting in a positive net of 42.3 percent across all vocations. Home builders, not surprising given the length of that industry’s downturn, have the strongest net at 55.5 percent (60.8 percent expecting contract volume increases minus 5.3 percent expecting decreases). Transportation reported a net of 21.4 percent (38.2 expected increases minus 16.8 expecting decreases). Construction Equipment Forecast
- Rental fleet sizes are expected to increase or remain steady. Equipment distributors expect to increase and maintain the size of their rental fleets in response to continued positive demand they experienced in 2015. In addition, contractors and distributors are expecting to increase new equipment purchases. 94% of contractors surveyed indicated they expected to acquire new equipment in 2016. Wells Fargo Construction Industry Report
- Spending will see a projected increase of 8.2%. “Buoyed mostly by the red-hot commercial sector, spending on nonresidential buildings should be close to $360 billion this year, approaching $390 billion in 2016,” said AIA Chief Economist, Kermit Baker, PhD, Hon. AIA. “But the demographic factors that are also fueling heavy demand for healthcare and education facilities are going to lead to a more balanced construction market in the foreseeable future.” AIA Semi-Annual Consensus Construction Forecast
Most promising is that data indicates that the positive trends are reaching most sectors and most regions.
Your Cat® dealer is ready to help you get the most out of your business in 2016.