News & Opinions
The latest news and insights from Hanley Wood’s outspoken experts and key thought-leaders throughout the residential and commercial design and construction industry.
AGC:Construction Market Growth Projected at 6-10 Percent for 2014
Ken Simonton / Associated General Contractors
Construction market growth is projected to average between 6 and 10 percent per year in 2014 – 2017, according to Ken Simonton, economist for Associated General Contractors of America. In a recent Construction Market Outlook, Simonton provided an excellent macro-economic assessment of the landscape for commercial and residential developers and builders. Below are a few data points from the outlook. To view the entire report, click here.
- Total construction spending: +6% to +10% per year
- less SF housing, retail; declining public spending
- new drivers: shale-based gas & oil; Panama Canal widening; more elderly & kids, fewer young adults
- Materials costs: +1 to +3% (similar to CPI); rare spikes
- Labor costs: +2.5% to + 5%
- Labor supply: widespread shortages possible due to retirements, competition from other sectors, fewer vets
Source: Ken Simonton, Associated General Contractors