Dive Brief:
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Spending on nonresidential construction projects will increase by nearly 9% in 2015 and by 8.2% next year, according to a compilation of the predictions of seven leading construction forecasters.
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The American Institute of Architects’ semi-annual Consensus Construction Forecast showed Wednesday that building of offices and hotels is leading the commercial construction industry to a strong finish to 2015.
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Spending on nonresidential buildings is expected to reach nearly $360 billion this year and $390 billion in 2016, AIA Chief Economist Kermit Baker said in a release. In “the foreseeable future,” he added, demand for building of healthcare and education facilities will further boost construction spending.
Dive Insight:
The compilation report also found “an unusually high spike” in manufacturing — a reaction to a surge in domestic oil and gas production — contributed to the forecasters’ positive outlook.
Some had doubted the industry could bounce back from an especially harsh winter that curtailed design and construction activity in the first quarter of the year.
Yet architects in every region of the country reported increased billings in June, an indication of how much construction will occur nine months to a year in the future.