Entering the second quarter of 2022, FMI expects construction spending to end 2022 up 7% compared to up 8% in 2021. But that growth will be offset by inflation, supply chain snarls, a shortage of workers, project delays and economic turmoil caused by international events such as the Russia-Ukraine war, according to FMI's 2022 North American Engineering and Construction Outlook Second Quarter Edition.
Key highlights of the report include:
- Strong investment in residential and manufacturing will drive industry spending through 2022.
- Due to expected increases in infrastructure funding later this year, several nonbuilding segments, including highway and street, sewage and waste disposal and water supply, are all anticipated to realize growth rates of more than 5% in 2022.
- Year-end 2022 growth will be tempered by ongoing spending declines across various nonresidential building segments, including lodging, office, educational, religious, public safety and amusement and recreation.
- Commercial, health care, communication, power and conservation and development are all expected to end the year with low growth, roughly in line with the historical rate of inflation, between 0% and 4%, and are therefore considered stable.
Download the free PDF report (short registration required).
Related Stories
Wood | Jun 10, 2021
Three AEC firms launch a mass timber product for quicker school construction
TimberQuest brand seeks to avoid overinvestment in production that has plagued other CLT providers.
Education Facilities | Jun 4, 2021
Three ProConnect events coming this fall: Sustainability (Nov 2-3), Education (Nov 16-17), Multifamily (Dec 12-14)
SGC Horizon ProConnect 2021 schedule for Education, Multifamily, Office, and Single Family events.
Education Facilities | May 25, 2021
AIA honors cutting-edge designs with 2021 Education Facility Design Award
Recipients' designs enhance student learning experiences.
Digital Twin | May 24, 2021
Digital twin’s value propositions for the built environment, explained
Ernst & Young’s white paper makes its cases for the technology’s myriad benefits.
Education Facilities | May 17, 2021
Henning Larsen breaks ground on sustainable primary school in Denmark
The project will be the country’s first Ecolabel primary school.
Wood | May 14, 2021
What's next for mass timber design?
An architect who has worked on some of the nation's largest and most significant mass timber construction projects shares his thoughts on the latest design trends and innovations in mass timber.
Education Facilities | May 3, 2021
Khor Kalba Turtle and Wildlife Sanctuary completes in the United Arab Emirates
Hopkins Architects designed the project.
Education Facilities | Apr 6, 2021
Saugus Middle/High School completes
HMFH Architects designed the project.
Education Facilities | Mar 3, 2021
Higher Ed facilities management is at a crossroads
A new report states the pandemic brought to the fore the need to reassess space and investment in existing buildings.
Market Data | Feb 24, 2021
2021 won’t be a growth year for construction spending, says latest JLL forecast
Predicts second-half improvement toward normalization next year.
