flexiblefullpage -
billboard - default
interstitial1 - interstitial
catfish1 - bottom
Currently Reading

FMI’s Construction Outlook: Third Quarter 2011 Report

FMI’s Construction Outlook: Third Quarter 2011 Report

October 12, 2011
FMIs latest forecast for construction put in place calls for 2% growth in 2011 and 6% for 2012 to $886.2 billion in total const


FMI, the largest provider of management consulting and investment banking to the engineering and construction industry, announces the release of the Construction Outlook: Third Quarter 2011 Report.

Overall, in FMI’s latest forecast for construction put in place calls for 2% growth in 2011 and 6% for 2012 to $886.2 billion in total construction. In today’s economy that sounds like ambitious growth, but in constant 2006 dollars, that is only 3% growth for 2012 and a 1% drop in construction for 2011. To put it in perspective, in 2012 we will nearly return to 2003 levels of construction in current dollars.

Despite geo-political upheavals and constant debates about debt levels in the U.S. and Europe, budget brinksmanship in Congress, as well as a rash of natural disasters, construction markets are inching along. U.S. GDP is slow at 1.3%, but positive. Some of the unemployment problem is due to increased productivity in manufacturing and other service businesses, but, so far, there doesn’t seem to be much innovation and investment in new markets and jobs. Both consumers and businesses are rebuilding their savings and confidence in the economy, but that is a slow process with numerous setbacks. It seems that the largest barrier to moving the economy forward is fear that no one has a plan that will work. After the go-go years of high finance and exuberant housing markets, we now have high-risk aversion, and not without good reasons.

In the midst of these extremes, the inchworm economy is struggling along, and it will take some time to revive an industry the size of U.S. construction. There are positive signs to build on, for instance, if businesses with record profits now held in reserve decide that they can make more with their money by investing in new R&D, plants, equipment and personnel, then a new construction boom could follow. On the other hand, as economists like to say, if fear and risk aversion win out, those looking for a second dip of recession could find their wishes come true.

Hard-hit residential markets will start to improve, especially multi-family construction, which is becoming more desirable as banks continue to tighten financing requirements and homeowners are still reeling from the fears of foreclosure. Lodging, office and commercial construction will continue to struggle until more Americans have good jobs. BD+C

Related Stories

75 Top Building Products | Apr 22, 2024

Enter today! BD+C's 75 Top Building Products for 2024

BD+C editors are now accepting submissions for the annual 75 Top Building Products awards. The winners will be featured in the November/December 2024 issue of Building Design+Construction. 

Laboratories | Apr 22, 2024

Why lab designers should aim to ‘speak the language’ of scientists

Learning more about the scientific work being done in the lab gives designers of those spaces an edge, according to Adrian Walters, AIA, LEED AP BD+C, Principal and Director of SMMA's Science & Technology team.

Resiliency | Apr 22, 2024

Controversy erupts in Florida over how homes are being rebuilt after Hurricane Ian

The Federal Emergency Management Agency recently sent a letter to officials in Lee County, Florida alleging that hundreds of homes were rebuilt in violation of the agency’s rules following Hurricane Ian. The letter provoked a sharp backlash as homeowners struggle to rebuild following the devastating 2022 storm that destroyed a large swath of the county.

Mass Timber | Apr 22, 2024

British Columbia changing building code to allow mass timber structures of up to 18 stories

The Canadian Province of British Columbia is updating its building code to expand the use of mass timber in building construction. The code will allow for encapsulated mass-timber construction (EMTC) buildings as tall as 18 stories for residential and office buildings, an increase from the previous 12-story limit. 

Standards | Apr 22, 2024

Design guide offers details on rain loads and ponding on roofs

The American Institute of Steel Construction and the Steel Joist Institute recently released a comprehensive roof design guide addressing rain loads and ponding. Design Guide 40, Rain Loads and Ponding provides guidance for designing roof systems to avoid or resist water accumulation and any resulting instability.

Building Materials | Apr 22, 2024

Tacoma, Wash., investigating policy to reuse and recycle building materials

Tacoma, Wash., recently initiated a study to find ways to increase building material reuse through deconstruction and salvage. The city council unanimously voted to direct the city manager to investigate deconstruction options and estimate costs. 

Student Housing | Apr 19, 2024

Cal State Long Beach student housing project will add 424 beds

A new $115 million project recently broke ground at California State University, Long Beach (CSULB) that will add housing for 424 students at below-market rates. The 108,000 sf La Playa Residence Hall, funded by the State of California’s Higher Education Student Housing Grant Program, will consist of three five-story structures connected by bridges.

Construction Costs | Apr 18, 2024

New download: BD+C's April 2024 Market Intelligence Report

Building Design+Construction's monthly Market Intelligence Report offers a snapshot of the health of the U.S. building construction industry, including the commercial, multifamily, institutional, and industrial building sectors. This report tracks the latest metrics related to construction spending, demand for design services, contractor backlogs, and material price trends.

MFPRO+ New Projects | Apr 16, 2024

Marvel-designed Gowanus Green will offer 955 affordable rental units in Brooklyn

The community consists of approximately 955 units of 100% affordable housing, 28,000 sf of neighborhood service retail and community space, a site for a new public school, and a new 1.5-acre public park.

Construction Costs | Apr 16, 2024

How the new prevailing wage calculation will impact construction labor costs

Looking ahead to 2024 and beyond, two pivotal changes in federal construction labor dynamics are likely to exacerbate increasing construction labor costs, according to Gordian's Samuel Giffin.

boombox1 - default
boombox2 -
native1 -

More In Category

halfpage1 -

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021