AIA forecast predicts 4.4 percent rise in nonresidential construction spending in 2012

A sharp spike in demand for industrial facilities, along with sustained demand for hotels and retail projects, could translate into a 4.4 percent rise in nonresidential construction spending this year, according to the American Institute of Architects semi-annual Consensus Construction Forecast. The survey of leading U.S. construction forecasters also projects a 6.2 percent increase of spending in 2013.

“With companies looking to bring back manufacturing jobs from overseas, there has been a sharp rise in demand for industrial facilities, which is leading to an upward revision in projections for future construction spending,” said AIA Chief Economist Kermit Baker, in an August 2 release. “Continued budget shortfalls at the state and local level, along with a depressed municipal bond market are holding the institutional market back from seeing similar upticks in spending.”

The AIA semi-annual Consensus Construction Forecast by segment is as follows: