FMI's Construction Outlook 1st Quarter 2014

FMI's Construction Outlook 1st Quarter 2014

The issues of rapid change affecting supply and demand are reflected in our construction forecast. Commercial construction is beginning to lift itself out of the slump because investors are beginning to take some more risk as it becomes “grow or perish” for retailers trying to stay ahead of the consumer. Office construction still faces uncertainty in job growth in the service sector in no small part due to technology replacing workers (alternative goods). Public sector construction is stagnating due to lack of funding as states build up tax coffers. The federal government wrestles with the deficit, making the economic choice between directly helping people get out of a state of joblessness and growing poverty and back to contributing to the wealth of the nation, or paying down the deficit and hoping that lower debt will spur investors to expand or start up new businesses and hire more. Health care construction is being pulled in many directions, from political questions to technological advancements to finding some sort of equilibrium between growing demand and high-priced supply.

The outlook is good for those who can get out ahead of the crowd or those who can stand out in the crowd, but it will be a long struggle for those who are stuck behind the pack looking for leftovers. Read the entire report.

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