Construction Put In Place to Grow 8 Percent in 2015

Words: Dan KamysTotal construction put in place for 2015 is predicted to grow 8 percent according to the latest report from FMI, an organization offering management consulting, investment banking and people development services to the engineering and construction industry. This supports earlier FMI predictions that CPIP will top $1 trillion in 2015, something the market has not seen since 2008. This indicates that the economy is on track for a resilient recovery. “The current growth cycle appears to be broad-based and sustainable,” says Randy Giggard, managing director of research services for FMI. “Most of the new construction activity is in the private sector. Projects dependent on government spending, especially those involving infrastructure, continue to be at the mercy of politics.” Geographically, larger cities are experiencing strong construction growth due in part to increases in rents and declining inventory for housing and office space. The sectors expected to experience the highest growth rate are:
  • Lodging construction – 16 percent CPIP growth
  • Commercial construction – 15 CPIP growth
  • Manufacturing construction – 11 CPIP growth
  • Office construction – 11 CPIP growth
  • Residential construction – 9 percent CPIP growth
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