Market Forecast: Nonresidential Construction to Rebound in 2017

CHICAGO, Ill. – A market study released by the Metal Construction Association reports that 2017 will be the year the nonresidential construction industry will return to the peak levels last seen in 2007. The residential market will take a bit longer to hit the mark, but the news is positive across the board for industry stakeholders. According to the study, conducted by FMI, the growth has been steady and moderate over the past five years and is slowly inching its way back to high levels seen a decade ago. Growth is predicted to reach 8 percent in 2016 reaching $1.14 trillion. The market is highly dependent on economic factors like interest rates, consumer spending and housing growth.

The study shows the strongest hot spots for total construction growth (residential, nonresidential and non-building combined) are in the Pacific, South Atlantic, Mountain, New England and East North Central. The top 20 growth areas, based on construction volume and compound annual growth rates, are listed below. The two common factors among these areas that contribute to growth are the number of jobs, particularly technical jobs, and ties with universities.

1. Riverside-San Bernardino-Ontario, Calif.
2. Los Angeles-Long Beach-Anaheim, Calif.
3. Phoenix-Mesa-Scottsdale, Ariz.
4. Miami-Fort Lauderdale-West Palm Beach, Fla.
5. San Francisco-Oakland-Hayward, Calif.
6. Atlanta-Sandy Springs-Roswell, Ga.
7. Dallas Fort Worth-Arlington, Texas
8. Sacramento-Roseville-Arden-Arcade, Calif.
9. Denver-Aurora-Lakewood, Colo.
10. Washington-Arlington-Alexandria, D.C.-Va.-Md.-W.Va.
11. San Diego-Carlsbad, Calif.
12. Seattle-Tacoma-Bellevue, Wash.
13. Las Vegas-Henderson-Paradise, Nev.
14. Houston-The Woodlands-Sugar Land, Texas
15. Tampa-St. Petersburg-Clearwater, Fla.
16. Portland-Vancouver-Hillsboro, Ore.-Wash.
17. San Jose-Sunnyvale-Santa Clara, Calif.
18. Orlando-Kissimmee-Sanford, Fla.
19. Chicago-Naperville-Elgin, Ill.-Ind.-Wis.
20. San Antonio-New Braunfels, Texas