AIA Forecast Shows Another Steep Decline in
Nonresidential Construction Activity for 2010
January 6, 2010
Despite signs that the overall U.S. economy is beginning to improve,
the American Institute of Architects (AIA) semi-annual Consensus
Construction Forecast reports that nonresidential construction spending
is expected to decrease by 13.4 percent in 2010 with a marginal
increase of 1.8 percent in 2011 in inflation adjusted terms. Commercial
and industrial projects will continue to see the most significant
decrease in activity. The forecast also notes that institutional
building categories will fare better over this period thanks, in
part, to federal stimulus spending.
"When economies emerge from this prolonged recession, recovery
for nonresidential construction activity typically takes longer,"
says AIA chief economist, Kermit Baker, PhD, Hon. AIA. "Hardest
hit will be the commercial and industrial sectors with projected
declines in the 20 percent range for 2010 in most building categories.
Led by the healthcare market, the institutional sector will see
far less dramatic declines and should help lead the construction
industry into recovery in 2011."
HERE to read the more from the report.
Need more info and analysis about the issues?
HERE to subscribe to USGlass magazine.