CONSTRUCTION SPENDING IN 2017: HERE’S WHAT TO EXPECT
Still fine-tuning your business plan for 2017? There are reasons to be optimistic, say the experts from Dodge Data & Analytics in their 2017 Construction Outlook. Continued job growth, a healthy commercial real estate market, stable energy prices and gradual hikes in interest rates all set the stage for moderate growth in construction spending. Which sectors are on the rise?
Single family housing: Up 12%. Access to home mortgages continues to improve, and a better job market is easing anxiety among potential homebuyers—plus, the oldest Millennials are approaching age 35. It all adds up to higher demand for new homes.
Institutional building: Up 10%. Spending in this sector looks strong, too, reflecting an uptick in new schools, convention centers, sports arenas, casinos and transportation terminals.
Commercial building: Up 6%. Office and store construction activities are rebounding from low levels, while warehouse construction remains strong. Hotel building is beginning to wane, but remains at a healthy level.
Public works: Up 6%. Despite mixed messages from U.S. policymakers about infrastructure investment, public works spending is expected to increase. Watch for new highway, bridge and waterworks projects.
Key takeaways: The construction industry is still expanding. Growth may have slowed since the 2012-2015 boom, but new business opportunities are emerging and competitive pressures are bound to heat up. What steps are you taking to stay in the lead?