FMI Predicts Growth for 2014 US Construction Market

In its 2014 US markets construction overview, FMI said that construction put in place (CPIP) at the end of 2013 is expected to be at $909.6 billion and predicts CPIP growth rates to be slightly ahead of the GDP in 2014.

Researchers with the organization predicted that residential CPIP is anticipated to grow from $338.2 billion in 2013 to $379.6 billion in 2014. Health care CPIP is also expected to grow 6% in 2014 to $44 billion. Transportation construction should finish 2013 with an 8% increase; 2014 predictions show a decrease to 7 percent growth. Manufacturing construction is on the upturn, expected to grow 4% in 2014, after its 2% drop in 2013. Sewage and waste CPIP should reach $21.3 billion in 2014.

With moderate growth predicted marketwide, there are key trends to watch that will likely affect various sectors and regions in the U.S. Presenting both threats and opportunities are:

• The shift from shale-gas to shale-oil production has led to projections that the U.S. will produce more oil than it imports by late 2014.
• The federal government’s fiscal difficulties continue to create business uncertainty. Many are worried about the federal debt and the government’s solution to address the problem.
• Implementation of the Affordable Health Act is causing concern, as repercussions are anticipated.
• With baby boomers continuing to retire, succession planning and a search for talent remains one of the industry’s primary challenges.
• Modularization and prefabrication is expected to play an increasingly vital role in improving the productivity of the entire construction value chain.
• As a result of the expansion of the Panama Canal, U.S. coastal infrastructure opportunities will create significant corridors of construction activity starting as early as 2014.

FMI publishes the U.S. Markets Construction Overview annually. To purchase a copy visit www.fminet.com/resources.

Source: Crane & Rigging Hot Line