Construction market to increase 11 percent in 2010, according to Outlook report
October 16, 2009
COMMERCIAL, RETAIL, FABRICATION : FORECASTS, MEETINGS AND EVENTS
McGraw-Hill Construction, part of The McGraw-Hill Cos., today released its 2010 Construction Outlook, a mainstay of business planning for construction and manufacturing executives, which forecasts an increase in overall U.S. construction starts for next year, according to an Oct. 16 release. Due to improvement for housing from extremely low levels and broader expansion for public works, the level of construction starts in 2010 is expected to climb 11 percent to $466.2 billion, following the 25 percent decline predicted for 2009.
Highlights of the 2010 Construction Outlook include:
- Single family housing for 2010 will advance 32 percent in dollars, corresponding to a 30 percent increase in the number of units to 560,000 (McGraw-Hill Construction basis).
- Multifamily housing will improve 16 percent in dollars and 14 percent in units, after steep reductions in 2008 and 2009.
- Commercial buildings will drop 4 percent in dollars, following a steep 43 percent drop in 2009. The weak employment picture will further depress occupancies, making it even more difficult to justify new construction.
- Institutional buildings will begin to stabilize after losing momentum in 2009. Square footage will retreat another 2 percent after sliding 23 percent this year. The dollar amount of construction for this sector will edge up 1 percent, helped by a growing amount of energy-efficiency upgrades to federal buildings and continued strength for military buildings.
- Manufacturing buildings will drop 14 percent in dollars and 3 percent in square feet, hampered by the substantial amount of slack manufacturing capacity.
- Public works construction is expected to rise 14 percent, given more wide-ranging strength across all project types.
- Electric utility construction will slip 3 percent, continuing to settle back after a record high in 2008.
“The stimulus funds are meant to be just that, a stimulus, not the be-all-end-all answer to infrastructure financing,” Giunta said, in the release. “Both public and private sectors need to be innovative and rewrite the rules of project finance to address tremendous construction needs with minimal financing options.”