As a company focused on commercial design, not only do we track style trends, we also we stay apprised of what’s happening on the construction side. We feel it is important for us to stay attuned to the nonresidential construction starts and forecasts in order to prepare to supply and service your needs responsively.
Here’s a look at what happened in nonresidential construction over the past year and what we can look forward to in 2018.
Construction Spending
When looking at construction in 2017, it’s helpful to get a little perspective by looking a little further back to previous years. Total construction spending in 2016 increased 6.5% from the previous year. 2015 construction spending increased 10.7%, and in 2014 spending was up nearly 11%. And while 2017 isn’t quite finished, The AIA’s Consensus Construction Forecast Panel predicts construction spending on nonresidential buildings to increase 3.8%. Commercial construction spending is expected to see an 8.8% increase for the year, while Industrial construction spending is predicted to see a decrease of 6.6%.
Construction Starts
According to ConstructConnect, construction starts increased 13.2% from 2015 to 2016. 2015 saw a similar 13.6% increase in construction starts. ConstructConnect’s forecast for construction starts in 2017 is a 7.9% growth over 2016.
Construction Starts & Spending Forecast for 2018
Construction starts and spending are expected to stay strong in the coming year, but the amount of growth should be a little more subdued. ConstructConnect’s forecasts construction starts to increase 4.8% iin 2018. Commercial construction (offices, parking garages and transportation terminals) is expected to have a 12.4% increase.
According to AIA’s Consensus Construction Forecast Panel, nonresidential buildings construction spending will increase 3.6% in 2018. Commercial construction spending is only expected about a 4.0% increase, which less than half the growth expected for this year.
Residential construction, especially single-family construction, is expected to remain strong in 2018 especially if millennials decide to become homeowners. Lodging construction (hotels and motel), is expected to be down in 2018 after experiencing growth in 2017. Retail construction will continue to decline in 2018 thanks to ecommerce and its effects on brick-and-mortar stores. Though public construction declined in 2017, we should see spending expansion in terminals and runways, as well as public education.
The overall outlook for the construction industry in 2018 is positive. That design firms are seeing healthy conditions and experiencing positive growth is an indicator of continued construction growth in the coming year.
GIO Tile consistently seeks market data to best prepare and respond to the specific needs of the commercial architectural and interior design communities. Feel free to connect with your GIO sales representative for insights and ideas for taking your upcoming commercial building or renovation projects to the next level with superior tile selections.
