FMI's Construction Outlook (1st Quarter, 2015)

Despite the long list of challenges the economy is facing, we expect total construction put in place to grow 8% in 2015 or somewhat faster than in 2014. The biggest challenge faced by contractors this year continues to be finding and retaining the best talent. Residential construction is expected to grow 9%, lodging, 16%; office construction, 11%; commercial construction, 15%; and manufacturing, 11%. Even though markets like education and health care will grow a more modest 3%and 4% respectively, continued slow growth is finally catching up to capacity in some parts of the country, and there is more urgency to grow the talent pool or some contractors will need to turn down new projects. That is hard to believe, but even at a snail’s pace, the economy is bound to get somewhere after a while, and it is now arriving.

The construction industry is catching up with where it left off in the growth period before the boom busted. However, that doesn’t mean the industry is about to repeat the same cycle. The oil and gas boom hasn’t totally fallen apart, but it is certainly slowing. That means the loss of some good jobs and wages; however, some of those who lost their jobs in the oil fields may be available to contractors in other parts of the country. Otherwise, the current growth cycle appears to be broad-based and sustainable.

You can read the full report at: http://www.fminet.com/media/pdf/forecasts/Outlook_2015Q1_FMI.pdf.