GIO Looks at Year-to-Date 2015 Nonresidential Construction Starts
At GIO, we’re focused on the business of commercial design. Of course that means we track trends in style and material preferences, but it also means that we stay closely attuned to nonresidential construction as a whole. The more commercial spaces are being built or renovated, the more tile will be needed to cover surfaces in those spaces–and that’s important information for us to know in order to prepare to supply and service your needs responsively.
Here’s a glance at how the year is tracking on the construction side.
Total construction activity, measured by data on construction starts, is likely to show an overall gain in the 13% range for 2015, per data found via construction.com and other sources. This is a strong increase, yet much of the uptick is tied to nonbuilding construction, such as the start of several massive liquefied natural gas terminals in the Gulf Coast region a rise in construction of new power plants.
At midpoint in the fourth quarter, reports indicate that nonresidential building has retreated somewhat from the strength shown earlier in 2015. Some link this to a sharp pullback in manufacturing plant construction, combined with a leveling off in commercial (office, tech, finance) and institutional segments (education).
2016 Predictions for Nonresidential Construction Starts
According to Dodge Data & Analytics’ 2016 Construction Outlook, the economic environment for the coming year should support further growth of overall construction starts. Total construction starts in 2016 are forecast to advance 6%, with the nonresidential building sector predicted to advance 9%.
Here’s a look at how the forecast for the nonresidential building sector breaks out by market segment.
— Commercial building will increase 11%, up from the 4% gain estimated for 2015. Office construction will resume its leading role in the commercial building upturn, aided by more private development as well as construction activity related to technology and finance firms.
— Institutional building will advance 9%, picking up the pace after the 6% rise in 2015. The educational facilities category is seeing an increasing amount of K-12 school construction, supported by the passage of recent school construction bond measures.
— Manufacturing plant construction will recede an additional 1%, following the steep 28% plunge in 2015 that reflected a pullback by large petrochemical plant starts.
GIO: Business Intelligence, Solutions Savvy
We consistently seek 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.
