Dive Brief:
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Construction activity will grow by 8% in 2015, FMI, a management and investment banking consulting firm, predicted this week.
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The value of construction put in place—a measure of the value of construction that is installed during the year—is expected to top $1 trillion, more than any year since 2008 and an indication that “the economy is on track for a resilient recovery,” FMI predicted.
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Increasing rents and the declining inventory of homes and office spaces are strengthening the construction industry in larger cities. The construction sectors with the most growth are lodging, commercial, manufacturing, office, and residential, the report said.
Dive Insight:
Construction in the private sector is outpacing government projects, especially those involving infrastructure, Randy Giggard, FMI’s managing director of research services, said. Still, he noted, “The current growth cycle appears to be broad-based and sustainable.”