Predicting the future is a delicate art, but using statistical analysis and looking at trends makes it possible to project the trajectory of growth in the commercial construction industry. Recently, the American Institute of Architects (AIA) took an inside look at what we can expect across the country and various commercial sectors through the remainder of 2017.
Growth To Continue Across Commercial Construction
Commercial construction grew at an extremely fast pace in 2016 and started to slow down in early 2017. As 2017 continues, it looks likely that commercial construction growth will continue at a slower pace, averaging 6.5% across all industries.
Factors that are slowing growth compared to the previous accelerated rate of growth include a weakening manufacturing sector, economic uncertainty in other parts of the world, and proposed regulations by the new US presidential administration. Despite growth being slower than last year, the good news is that the overall growth in commercial construction looks healthy and steady.
Hotel and Office Top Commercial Construction Growth
At 7.6 and 7.5 percent growth respectively, the AIA predicts the hotel and office industries will have the highest commercial construction growth for the rest of 2017. At 5.2% other commercial construction, such as retail will also continue to grow this year.
Highest Growth Projected in the Midwest and South
Multifamily executive Todd Burns predicts the highest commercial construction rate will be in the Midwest and South. This is largely thanks to strengthening automobile industries fueling construction growth in all sectors. Growth is likely to be at a slower pace in construction markets in the Northeast and West Coast.
Take advantage of the current growth market in the commercial construction sector and plan or develop a commercial light construction project today. Contact us for more information about how we can partner with you and develop the creative aspects of your project.