FMI Q2 Construction Outlook forecasts 5 percent growth
According to FMI Corp.’s Q2 Construction Outlook, construction activities are expected to grow at 5 percent in 2015, a decrease from the Q1 2015 outlook’s 8 percent forecast.
Despite this, the Q2 outlook reports the highest total for construction put in place since 2008.
“Construction spending continues to build on the rapid growth experienced in the industry last year,” says Chris Daum, senior managing director and president of investment banking at FMI Corporation.
The report forecasts construction activities across 17 sectors, including residential, non-residential and non-building groups. The sector with the highest growth prospect is manufacturing, which is expected to grow 17 percent in 2015.
In addition, commercial construction is expected to grow 13 percent in 2015 to $64,999 billion and 7 percent in 2016. Construction for the amusement and recreation sector is expected to grow 9 percent in 2015; office construction is expected to grow 11 percent in 2015; and residential construction is expected to see an 8 percent growth in 2015. The report also forecasts growth in lodging and transportation construction.
According to the outlook, the sector with the highest setback is power, due to changing fuel supplies using more natural gas and less coal, as well as variable growth in alternative energy sources like solar and wind. Religious construction is expected to decrease 5 percent and public safety construction is expected to slow 3 percent in 2015.
FMI is a provider of management consulting, investment banking and leader development services to the engineering and construction industry. Access FMI’s Q2 Construction Outlook here.
About the Author: Allison Kral
Allison Kral is the former senior digital media manager for North Coast Media (NCM). She completed her undergraduate degree at Ohio University where she received a Bachelor of Science in magazine journalism from the E.W. Scripps School of Journalism. She works across a number of digital platforms, which include creating e-newsletters, writing articles and posting across social media sites. She also creates content for NCM's Portable Plants magazine, GPS World magazine and Geospatial Solutions. Her understanding of the ever-changing digital media world allows her to quickly grasp what a target audience desires and create content that is appealing and relevant for any client across any platform.Subscribe to Pit & Quarry
If you enjoyed this article, subscribe to Pit & Quarry to receive more articles just like it.
