Nonresidential Construction Spending Projected to Increase through 2023

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According to a new report from the American Institute of Architects, the nonresidential building sector is expected to see a healthy rebound through next year after failing to recover with the broader economy last year. The AIA’s Consensus Construction Forecast panel—comprising leading economic forecasters—expects spending on nonresidential building construction to increase by 5.4% in 2022, and accelerate to an additional 6.1% increase in 2023. With a 5% decline in construction spending on buildings last year, only retail and other commercial, industrial and healthcare facilities managed spending increases. This year, only the hotel, religious and public safety sectors are expected to … Read more

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Dodge Momentum Index Declines in December

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The Dodge Momentum Index fell 3% in December to 166.4 (2000=100), down from the revised November reading of 170.7. The momentum index, issued by Dodge Construction Network, is a monthly measure of the initial report for nonresidential building projects in planning, which have been shown to lead construction spending for nonresidential buildings by a full year. In December, commercial planning fell 4%, and institutional planning slipped 1%. Despite these declines, 2021 was a banner year for the Dodge Momentum Index—despite the lingering risks of COVID-19 and low demand for some types of nonresidential buildings. Throughout the year, the overall momentum … Read more

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Monthly Construction Input Prices Increase in December, Says ABC

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Construction input prices rose 0.6% in December compared to the previous month, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics’ Producer Price Index data recently released. Nonresidential construction input prices also rose 0.6% for the month. Input prices for all three energy subcategories decreased for the month. Crude petroleum was down 16.4% in December, while unprocessed energy materials and natural gas were down 13.1% and 12%, respectively. Prices in all three energy subcategories, however, are still up significantly on a year-over-year basis. Overall construction input prices are up 22.3% from a year ago, while … Read more

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Construction Firms Foresee Growing Demand for Most Project Types, Reports AGC

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Construction contractors expect increasing demand for numerous types of projects in 2022 despite ongoing supply chain and labor challenges, as most firms plan to add workers this year, according to survey results released today by the Associated General Contractors of America and Sage. The findings are detailed in Expecting Growth While Coping with the Lingering Impacts of the Pandemic: The 2022 Construction Hiring & Business Outlook. “Contractors are, overall, very optimistic about the outlook for the construction industry in 2022,” said Stephen E. Sandherr, the association’s CEO. “While contractors face challenges this year, most of those will be centered on … Read more

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Construction Industry Outlook 2022 E-Book Available

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After a challenging couple of years, the economy is on the mend. Growth is projected into 2022 as total starts are estimated to reach 6% to $946 billion. This e-book explores the following core sectors: • Residential construction: Single-family and multi-family housing • Commercial construction: Retail stores, warehouses, offices and hotels • Institutional building: Education, healthcare, transportation, recreation and public buildings • Manufacturing construction • Nonbuilding construction: Streets and bridges, environmental/ water public works, electric power/utilities and other non-building Get the latest forecasts and insights.

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