Dive Brief:
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Construction spending across sectors will increase by 7% next year, spurring revenue for building materials manufacturers to grow by 8% to 10%, Fitch Ratings predicted on Friday.
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Fitch Ratings’ 2015 Outlook: U.S. Building and Home Products and Services called its annual outlook for the building materials industry “stable” and predicted that 2014 growth and number of acquisitions in the sector will drive higher margins less debt next year.
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Much of the increase in construction spending will come from the private sector, the report said, as spending on public construction will be “constrained” and increase “only slightly” in 2015.
Dive Insight:
The forecast is the latest positive report card for the construction industry, which posted gains in its workforce in November and recently reported an uptick in the domestic demand for cement.
The report mirrors predictions from management consulting firm FMI, which said the construction industry will end 2014 with 7% growth and continue to advance next year.